Dung Quat oil refinery owner deposits 1.5 billion USD in bank

Binh Son Refining and Petrochemical, owner of Dung Quat Oil Refinery, has nearly 36,500 billion VND in bank deposits, bringing in 1,200 billion VND in interest in 9 months.

According to the consolidated financial report, by the end of September, Binh Son Refining and Petrochemical Joint Stock Company ( BSR ) had about 36,470 billion VND (nearly 1.5 billion USD) in non-term bank deposits and deposits with terms of less than 12 months. This figure increased by more than 45% compared to the beginning of the year, with the largest increase in the group of deposits with terms of over 3 months. Bank deposits account for more than 41% of the total assets of the enterprise.

In the third quarter alone, BSR increased its idle cash by more than VND7,200 billion. This enterprise also changed its structure to prefer longer-term bank deposits, instead of focusing on deposits of no more than 3 months as before.

This "savings" contributed greatly to BSR's financial revenue, increasing by 22% to VND420 billion. In the first 9 months, the company received nearly VND1,176 billion in interest from deposits. On average, BSR earned more than VND4 billion from savings interest every day.

Unlike the previous period, this time the company's business activities also grew in line with financial activities. In the third quarter, although revenue decreased slightly, the cost of goods sold was cut sharply, helping gross profit increase 5.8 times compared to the same period last year. The group of regular expenses also increased, but BSR still had more than 3,235 billion VND in profit after tax, an increase of more than 7 times compared to the third quarter of 2022.

The management said that the increase in crude oil prices and good price gaps have led to an improvement in production and business activities. Specifically, crude oil prices increased from an average of more than 80 USD per barrel in July to 94 USD per barrel in September. In addition, the gap between product prices and crude oil prices in this period is also better than in the third quarter of 2022.

In the first 9 months, BSR recorded nearly 105,500 billion VND in revenue and nearly 6,200 billion VND in after-tax profit. These two indicators decreased by 17% and 52% respectively compared to the same period last year. However, this enterprise has far exceeded the plan to make a profit of more than 1,600 billion VND this year.

At the previous annual meeting, the company's board of directors said the profit reduction target was inevitable because 2022 had achieved record business results, but this year had encountered many difficulties and had to maintain the entire Dung Quat oil refinery. However, the Dung Quat maintenance plan was later postponed to early 2024.

BSR’s backward business plan is based on a scenario where crude oil prices this year reach $70 a barrel. The cost of sales (including selling and administrative costs) of key finished products is projected to be VND15,070 per liter of diesel, VND17,910 per liter of RON E95 gasoline and VND18,000 per liter of E5 RON 92 gasoline.

Siddhartha

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