Binh Son Refining and Petrochemical Company (BSR), a Petrovietnam subsidiary, recorded a profit after tax of VND6,764 billion ($291.6 million) in the first five months of 2022, 5.2 times higher than its full year target.
The company, registered on the Unlisted Public Company Market (UPCoM: BSR), achieved $2.84 billion in revenue in the period, fulfilling 72% of its entire year plan.
BSR’s production and sales reached 2.84 million tons and 2.75 million tons respectively, completing 44% and 42% of its full year targets.
BSR's outstanding results coincide with soaring Brent crude oil prices given the global economy's robust rebound, resulting in surging demand for fuel. The Russia-Ukraine conflict also had a direct impact on already constrained oil and gas supplies.
Crude oil had surpassed $120 per barrel at the end of May, its highest in 10 years, and far outpaced the first-quarter average price of $97 per barrel.
In line with the global trend, the gasoline price in Vietnam rose by more than VND600 (2.6 U.S. cents) a liter on Wednesday to a record high. RON 95 and E5 RON92 gasoline reached VND31,570 and VND30,230 ($1.3) a liter respectively.
In addition, the disparity between crude oil prices and refined product prices was also a driving force in boosting BSR's profit growth and improving business efficiency.
BSR's achievements as the manager and operator of Dung Quat Oil Refinery in Quang Ngai have propelled the central province's growth, attracted investment, and transformed its economic structure from primarily agricultural to industrial development.
The corporation plans to invest $1.2 billion in upgrading Dung Quat Refinery this year. Of this, 40% derives from its equity, with the remainder coming from loans. It aims to raise the capacity from 6.5 million to 7.6 million tons per year, while also improving product quality and enabling treatment of sour crude oil.
BSR last Friday met with Trafigura Group, one of the world's leading independent commodity trading companies, to discuss the transport of imported crude oil and the sale of Dung Quat Refinery products.