Vietnam refinery operator BSR hits $2.6 bln valuation in bourse debut

Binh Son Refining and Petrochemical JSC, the operator of Vietnam’s first oil refinery Dung Quat, officially listed over 3.1 billion BSR shares on the Ho Chi Minh Stock Exchange (HoSE) on Friday, marking a rare "blockbuster" debut on the major bourse in recent years.

With a reference price of VND21,300 ($0.84) per share, BSR had a market capitalization of over VND66 trillion ($2.6 billion) on its listing day.

BSR chairman Bui Ngoc Duong stated that the listing would provide the company with greater opportunities to raise capital for expansion plans, including the expansion of the Dung Quat refinery.

Duong said he expected BSR shares could qualify for inclusion in the VN30 Index, which tracks the 30 largest-cap stocks, after six months of trading.

Regarding goals this year, BSR aims for an output of 6.7 million, including 2.2 million tons of RON 95 gasoline, 2.5 million tons of diesel oil, 600,000 tons of RON 91/92 gasoline, and 600,000 tons of Jet A1 fuel.

The company targets VND114.65 trillion ($4.5 billion) in consolidated revenue and VND752 billion ($30 million) in net profit in 2025, up 20% and down 34.5% from the 2024 plans, respectively.

The corporation plans an issuance of bonus shares at 60% next year to raise its charter capital to VND50.07 trillion ($1.97 billion) from VND31 trillion ($1.22 billion).

The company is expected to spend VND1.4 trillion ($55.1 million) on basic infrastructure development and VND337 billion ($13.2 million) on equipment purchases.

BSR reported Q3/2024 revenue of VND31.95 trillion ($1.26 billion), a decrease of 15.6% compared to the same period last year.

In the first nine months of this year, the firm posted revenue of VND87.06 trillion ($3.43 billion), down 17.5% year-on-year, and a net profit of VND674 billion ($26.59 million), down 89.1%.