The fluctuating crude oil prices have led to narrowing profit margins in the oil refining industry, creating financial pressure for oil and gas corporations and companies worldwide. Many oil refineries have been forced to restructure or suspend operations, with revenue and profits falling sharply, facing the risk of bankruptcy. In this difficult context, Binh Son Refining and Petrochemical Joint Stock Company ( BSR ) has thoroughly applied fluctuation management solutions in production and business operations to overcome the "storm" of market recession.
BSR has quickly adapted and responded to the decline in oil prices to withstand and overcome the current difficult period. BSR has developed and implemented a volatility management strategy, focusing on maintaining operational flexibility, optimizing available resources, saving costs, enhancing market forecasting, developing response scenarios, and promptly and flexibly adjusting production plans to suit market changes.
Regarding crude oil and input materials, BSR has increased its search and processing of new types of oil, especially imported oil, to improve the flexibility of the Factory. In addition, BSR has taken advantage of market opportunities and chosen appropriate purchase timings to increase the ability to purchase imported crude oil as well as search for new types of oil.
BSR continues to seek opportunities to import components for processing to increase economic efficiency. Researching the processing of VGO/Residue (intermediate components) to ensure the capacity of the RFCC plant in the case of processing low residue oil. At the same time, BSR has also tested and put into use new types of catalysts and additives to increase competitiveness and optimize production.
BSR always guides employees to promote initiatives and creativity to improve production and business efficiency and reduce costs. |
Regarding product structure optimization, BSR has researched and successfully applied the increase in output of high-value products such as ADO, Jet - A1, PP, and increased the ratio of Mogas 95/Mogas 92 gasoline products from 40%/60% according to the original design to over 70%/30%. BSR continues to implement innovative solutions to increase the ratio of Mogas 95 gasoline, aiming to increase the market share of Mogas 95 gasoline production in the coming years.
In product consumption, BSR regularly assesses and assesses the market situation to have appropriate solutions, proactively develops preventive solutions, and limits the impact in case of oil price adjustment such as: increasing operating capacity, quickly selling products and maintaining inventory at a reasonable level to minimize the risk of inventory price reduction, promoting sales and applying flexible sales policies.
In addition to crude oil and market solutions; maintenance work is organized periodically, regularly, effectively and at optimal cost, ensuring operational safety and stable operation for the Plant. Focus on increasing the rate of preventive maintenance and minimizing maintenance and repair time; improving capacity and increasing the application of scientific and technological solutions to contribute to improving labor productivity, safety, reliability of equipment/plant operation, product quality to reduce production costs.
BSR product export port. |
BSR promotes the synchronous implementation of effective risk control solutions at the Plant; researches and implements solutions to minimize Plant maintenance costs; changes the operating mode; researches and develops the production and application of new chemical and petrochemical products, advanced materials, clean fuels from domestic raw materials, etc. In particular, in management, BSR aims to participate in new business areas, including trading crude oil and petrochemical products; providing services, including operation and maintenance, overall maintenance management, project management, safety management, quality assurance/quality control (QA/QC) and training. BSR regularly updates and improves the management system, risk management, etc. in accordance with legal regulations and the Company's development strategy. BSR promotes digital transformation to promote the implementation of development orientations, risk management, smart production models and ensure the effectiveness of core business operations of the enterprise.
Regarding the practice of thrift and anti-waste, BSR has issued the Program of practicing thrift and anti-waste in 2024, the Directive on improving production and business efficiency in the last months of the year to complete the 2024 Management Plan and the Directive on implementing waste prevention and combat in the new context, aiming to strive to optimize and reduce at least 10% -15% of production and business costs compared to the plan (excluding crude oil costs and fixed asset depreciation).
Maintain safe and stable factory operations and promote scientific researchImplementing the Government's direction on ensuring energy security for the country, preventing oil and gas shortages and performing the business functions of the enterprise, BSR has operated Dung Quat Refinery flexibly, the technology workshops are operated at the most optimal capacity, the product structure is suitable, meeting the needs of the market. This has contributed to minimizing the negative impacts of the oil and gas market.
BSR also focuses on researching and developing new products, especially products that are in high demand in the market and have high prices. In recent times, BSR has optimized the increase of market share of new products. Specifically, BSR has developed and put into commercial operation 14 new products including 6 new PP resin products (T-3045, T-3050, I3085, I-3150, BOPP, TF4035) and 8 fuel products, of which 3 are special fuels for defense (JetA-1K, ADO-L62, A83 Gasoline), 1 marine fuel (Marine FO) and 4 other products as raw materials for petrochemicals: Treaed -LCO, Full Range Naphtha, RFCC Naphtha and Mixed C4.
The spirit of solidarity and corporate culture at BSR is always promoted. |
Energy saving work has applied more than 70 technical innovation solutions to significantly improve energy efficiency throughout Dung Quat Refinery. Specifically, the Energy Intensive Index (EII), which characterizes the energy efficiency of the Plant, decreased significantly from 118% before 2015 to 104% -106% in 2020 - 2023, and decreased to about 100% after the 5th General Maintenance of the Plant. Internal energy consumption correspondingly decreased from over 7.4% to 6.8%. According to the assessment report of the Solomon Organization, reducing the EII index by 1% is equivalent to saving about 2.6 million USD/year.
By synchronously implementing solutions to manage fluctuations in production and business activities, BSR expects to maintain stability in production and minimize risks from oil price fluctuations and sharp declines, and seize and take advantage of opportunities when the market shows signs of recovery.
Thanh Hieu
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