Vietnam refinery operator BSR to raise charter capital by nearly 64%

Binh Son Refining and Petrochemical JSC (BSR), the operator of Vietnam’s first oil refinery Dung Quat, will increase its charter capital by nearly 64%, from VND31 trillion to VND50.73 trillion ($1.99 billion), via share bonuses and dividends at a total ratio of 61.5%.

The plan was approved by state-owned Petrovietnam, its parent company, on December 24, the company said, expecting to receive final approval from competent authorities before Q1/2025.

The capital hike is part of BSR’s plan to meet investment needs for the Dung Quat refinery expansion project and the company’s long-term development strategy through 2030, with vision until 2045. At the 2024 AGM held in May, BSR announced it would raise charter capital through share bonuses and dividends from its development fund and undistributed after-tax profits, with a total ratio of 61.5%.

BSR's leadership emphasized that the move is critical to meeting the financing needs and improving the efficiency of the Dung Quat refinery expansion project. This project, which has been approved by the Prime Minister, aims to increase the refinery's capacity to 171,000 barrels per day, diversify raw material sources, ensure long-term and stable supply, optimize production costs, and enhance competitiveness.

Additionally, the project will help the refinery’s products meet Euro V standards, contributing to the sustainable development of Vietnam's petrochemical industry and ensuring national energy security.

On December 12, the Ho Chi Minh City Stock Exchange (HoSE) approved the listing of BSR shares. The company plans to have its final trading day on the Unlisted Public Companies Market (UPCoM) on January 6, 2025.

The reference price for the first trading day on the HoSE, set for January 17, will be determined based on the average closing price of BSR’s shares during the last 30 consecutive trading sessions on the UPCoM. With 3.1 billion shares, BSR is expected to be a rare "blockbuster" listing on the major bourse in recent years.

BSR is optimistic that the HoSE listing, coupled with the successful capital increase plan in 2025, will provide a solid foundation for sustainable growth and increase shareholder value. BSR is currently trading at around VND22,300 ($0.91) per share, a significant improvement from the VND19,000 in mid-November.

BSR was established in 2008 to build and operate the Dung Quat oil refinery in the central province of Quang Ngai, part of the government’s strategy to ensure national energy security. The company conducted its IPO and floated shares on the UPCoM in 2018.

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%.