Dung Quat oil refinery operator BSR expects profit slump in 2026, plans new name

Binh Son Refining and Petrochemical JSC (HoSE: BSR), the operator of Vietnam’s first oil refinery Dung Quat, has set a sharply lower profit target for 2026 despite projecting strong revenue growth amid tightened global oil supply due to the Middle East conflict.

According to documents released ahead of its AGM on April 13, BSR targets consolidated revenue of VND154.14 trillion ($5.85 billion), up 25% from 2025. It expects net profit to plunge 58% to VND2.16 trillion ($82.05 million).

The goals come after a strong performance 2025, when the company reported revenue of VND141.59 trillion ($5.37 billion), up 15.1% year-on-year, and net profit of more than VND5.19 trillion ($196.93 million), nearly nine times higher than the previous year.

The earnings surge was driven by favorable market conditions and improved refining spreads, the company said.

For 2026, the company plans total product output of more than 7.7 million tons, with diesel expected to make up over 3.5 million tons and RON 95 gasoline nearly 2.4 million tons.

As of Tuesday, Dung Quat refinery's output hiked 10.5%, with enough materials for production throughout April and May, according to the Ministry of Industry and Trade.

This year, Binh Son also plans to seek shareholder approval to rename itself Vietnam National Refining Corporation, signaling a broader strategic repositioning.

In terms of shareholder returns, Binh Son plans to distribute VND1.5 trillion ($56.93 million) in cash dividends for 2025 at a rate of 3%, equivalent to VND300 per share.

After allocations to development and bonus funds, retained earnings are expected to stand at VND2.92 trillion ($110.97 million). For 2026, the company has proposed a lower dividend plan of around VND1 trillion ($37.99 million) at a rate of 2%.

BSR shares have seen heightened volatility in recent sessions, with daily liquidity reaching tens of millions of shares. The stock has fallen about 30% from its peak in early March to around VND27,500 ($1.04) per share.

Recently, Binh Son said that it no longer meets the criteria of a public company under Vietnamese regulations. The firm currently has 56,356 shareholders, but only 7.87% of voting shares are held by non-major shareholders, falling short of the threshold rate at 10% required by authorities.