Binh Son Refinery, a major player in the petrochemical industry, suffered significant losses in the third quarter.

Binh Son Refinery ( BSR ) - a major domestic supplier of petroleum products - has just reported a loss of over 1,200 billion VND in the third quarter of 2024.

BSR is the unit that manages and operates the Dung Quat Refinery - Photo: BSR

Binh Son Refining and Petrochemical Joint Stock Company (BSR) has just announced its financial report, showing net revenue of VND 31,946 billion in the third quarter, a decrease of more than 15% compared to the same period last year. Notably, the cost of goods sold for BSR reached VND 33,415 billion this quarter, exceeding sales revenue.

Due to selling below cost, BSR recorded a gross loss of VND 1,469 billion, compared to a profit of VND 3,830 billion in the same period last year.

Also in the third quarter, BSR's financial revenue reached VND 553 billion, an increase of nearly 32% compared to the same period last year. A series of expenses, from interest on loans to sales and business management costs, all decreased.

However, "revenue did not cover expenses," and BSR still reported a net loss of over 1,200 billion VND in the third quarter. This is also the first quarter in nearly six years that this major domestic petroleum supplier has reported a loss.

Overall, in the first nine months of this year, BSR recorded revenue of VND 87,058 billion, a decrease of more than 17% compared to the same period last year. Net profit after tax reached VND 674 billion, a decrease of 89% compared to the same period in 2023.

In an explanation submitted to the Securities Commission, Mr. Bui Ngoc Duong, General Director of BSR, stated that in the third quarter of this year, the price of crude oil and refined products decreased sharply. Specifically, the price of crude oil fell from an average of $85.31/barrel in July 2024 to $74.33/barrel in September 2024.

The gap between crude oil prices and product prices has also narrowed significantly compared to the second quarter of this year and the first quarter of last year.

BSR is known to be the unit managing and operating the Dung Quat Refinery - a crucial project related to national security, with a total investment of over 3 billion USD, contributing to ensuring national energy security.

According to its 2023 annual report, BSR was established in 2008 and has a charter capital of over 31,000 billion VND.

The list of state shareholders and major shareholders as of the first six months of 2024, as published by BSR, is solely that of the Vietnam Oil and Gas Group (PVN). Currently, PVN holds 2.85 billion shares of BSR, equivalent to a 92.13% ownership stake.

BSR successfully held its IPO in January 2018, and BSR shares were listed on the UPCoM market of the Hanoi Stock Exchange from March 2018.

Recently, BSR announced a resolution regarding the listing of BSR shares on the Ho Chi Minh City Stock Exchange.

Source: https://tuoitre.vn/ong-lon-loc-hoa-dau-binh-son-lo-lon-trong-quy-3-20241030193404808.htm