Binh Son to finance refinery expansion from stellar loan package

December 03, 2016 | 15:20

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Binh Son Refining and Petrochemical Co., Ltd. (BSR) plans to take up a loan $1.2 billion to enhance and expand its Dung Quat Oil Refinery.

The company is in the process of selecting an adviser for the loan package.

General director Tran Ngoc Nguyen told Vnexpress that the expansion is expected to be completed in 2020 with a total investment capital of $1.82 billion, 30 per cent of which will be equity and the remaining 70 per cent would be covered from loans.

Upon completion, the expanded refinery’s capacity will increase by two million tonnes a year, to 8.5 million tonnes. It will be able to meet half of Vietnam’s fuel demand.

Earlier, in September, BSR released plans to launch its initial public offering (IPO) at the end of 2017, attracting interest from top global energy firms, especially Russian and Thai conglomerates.

The company is also hiring consultants to build its equitisation plan and calculate its corporate value, as well as the auctioned shares’ price. The Prime Minister’s decision to allow BSR to calculate its own selling price will create a platform for attracting domestic and foreign investors to the company’s IPO.

Since commercial operations began at the refinery in February 2009, BSR has imported 47 million tonnes of crude oil to produce 42 million tonnes of products, including propylene, polypropylene, liquefied petroleum gas, and gasoline, as well as kerosene, diesel, and jet fuel.

Nine months into the year, BSR earned VND51.89 trillion ($2.32 billion) in revenue, equalling 63 per cent of the annual target, however, it achieved a VND1.04 trillion ($46.5 million) profit, equalling 130 per cent of the target.

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