Binh Son Refining and Petrochemical Joint Stock Company (BSR) reported an after-tax profit of 8,265 billion VND for the first three months of the year, more than 20 times higher than the 400 billion VND recorded in the same period last year. This marks the highest quarterly profit in four years and significantly surpasses the full-year after-tax profit target of 2,162 billion VND, approved at the annual general meeting late last month.

The company's gross profit margin reached 21% during this period, a significant jump from about 1% in the same period last year. Beyond core operations, BSR also reported nearly 530 billion VND in gains from bank deposits and exchange rate differences, a substantial increase compared to the first three months of last year.

BSR announced first-quarter revenue exceeding 45,900 billion VND, a 44% increase from the same period last year. Diesel oil contributed nearly half of this revenue, totaling 21,180 billion VND. Unleaded gasoline products RON 95 and RON 92 brought in over 16,000 billion VND. Other revenue streams included Jet A-1 aviation fuel, liquefied petroleum gas, bio-gasoline, and kerosene. These are finished products from the Dung Quat refinery in Quang Ngai province, managed and operated by BSR.

Luong Minh Hai, BSR's Deputy General Director, explained the profit surge in a document to the Ho Chi Minh City Stock Exchange. He attributed it to a strong increase in crude oil prices during the first quarter, which climbed from approximately 67 USD per barrel in january to nearly 104 USD in march. Conversely, crude oil prices in the same period last year saw a decline, dropping from 79 USD per barrel to 72,6 USD.

Dung Quat refinery. Photo: BSR

Following the positive financial announcement, BSR's shares responded strongly on the stock market. This morning, the stock surged to its daily trading limit of 25,250 VND, with nearly 6 million shares still in buy orders.

BSR aims for consolidated revenue exceeding 154,000 billion VND this year, a 7% increase from last year. If met, this target would represent the second-highest revenue in nearly 20 years of operation, trailing only 2022's figure of over 167,000 billion VND.

BSR's management stated that the company activated an emergency response when the recent Middle East conflict began. They developed market scenarios ranging from a few weeks to six months. The company is currently adhering to these scenarios, securing crude oil supplies to maintain "very high capacity" operations until early july.

By the end of Quarter I, BSR's total assets surpassed 106,700 billion VND. Inventory accounted for over 21,500 billion VND of this, nearly doubling from the start of the year. The company maintains high inventory levels of crude oil and finished products to proactively manage raw material supply amidst volatile global geopolitics and potential disruptions to the crude oil supply chain. This substantial product inventory also allows BSR to readily adjust to market demands, meeting domestic fuel needs during sudden increases or import interruptions.

Phuong Dong