Binh Son Refinery reports $185 million in net loss
Binh Son Refinery reports $185 million in net loss
Due to the plunging price of oil, Binh Son Refining and Petrochemical Co., Ltd. (BSR), the operator of Dung Quat Oil Refinery, reported a net loss of VND4.25 trillion ($184.8 million) in the first half of this year.
Binh Son has reported poor business in both quarters of the first half
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According to its consolidatedfinancial report, in the first six months of this year, BSR acquired VND31.7 trillion ($1.4 billion) in revenue, down 38 per cent on-year. In the second quarter, the revenue was VND13.37 trillion ($581.3 million), only half of the corresponding period of last year.
Although the group cut a series of expenses it still suffered an after-tax loss of VND1.89 trillion ($82.17 million) in the second quarter.
The main reason of the bleak results was the COVID-19 pandemic, which left a large volume of products unsold. At the peak of the pandemic, unsold products made up 90 per cent of its capacity.
In the first quarter, BSR reported a net loss of VND2.34 trillion ($101.74 million). During the period, oil prices dropped 47 per cent, going from $67 per barrel in December 2019 to $31.8 in March.
This year, BSR expects to refine 5.56 million tonnes of products, creating VND80.68 trillion ($3.5 billion) in revenue and VND1.18 trillion ($51.3 million) in after-tax profit. However, this plan works with the price of 60 US cent per barrel.
The Board of Directors will adjust the revenue and profit targets once enough information is available to assess the impact of COVID-19 and the decrease in oil prices.
At its recent shareholders' meeting, BSR approved plans to list shares on the Hanoi Stock Exchange this year. In addition, it also targets to co-operate with PetroVietnam which is planning to divest its holding in BSR. At present, PetroVietnam owns 92.12 per cent stake in BSR.
