PetroVietnam increases holding in BSR to 92.12pct

10-Jul-2018 Intellasia | Hanoi Times | 6:02 AM Print This Post

Binh Son Refinery and Petrochemical (BSR) is in favour of selling stake through public auction.

State-run energy giant Vietnam National Oil and Gas Group (PVN) has increased its shareholding in its subsidiary BSR to 2.85 billion shares, or 92.12 percent of charter capital, according to VietnamFinance.

Under the equitisation plan, the operator of Dung Quat Oil Refinery, had been scheduled to sell a 49 percent stake to strategic investors through private placements three months after its initial public offering (IPO) on January 17. PVN, which represents the state, would retain 43 percent of BSR’s charter capital or 1.33 billion shares.

However, the 49 percent stake was transferred back to PVN as BSR had decided to suspend the plan to sell shares to strategic investors as the deadline of three months after its IPO has expired.

Consequently, the oil refinery operator will sell the stake through public auction as instructed by the government.

A number of investors, including Vietnam’s fuel retailer Petrolimex, India’s Oil and Natural Gas Corporation, Indonesia’s Pertamina, Thailand’s Bangchak Corporation Public Company have inquired about the possibility of cooperating with BSR during the recent annual general meeting, said a company official.

After nine years of operation, Dung Quat Oil Refinery supplied over 50 million tonnes of petroleum products to the market, generating accumulated revenue of VND862.5 trillion (US$38 billion). The refinery contributed around $7 billion to the state budget, more than double the total investment capital of over $3 billion.

BSR set profit target to reach its peak at VND6.37 trillion (US$281.2 million) in 2019, after which the profit will gradually decline in the next three years due to higher costs caused by investment activities.

In the first six months this year, BSR’s revenue stood at VND55.3 trillion (US$2.41 billion), or 69.7 percent of the year plan, according to the company’s report.

During this period, the company’s after-tax profit reached VND2.94 trillion (US$128.1 million), equivalent to 84.7 percent of the year target.


Category: Stocks, Vietnam

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