Binh Son Refining and Petrochemical Co., Ltd. (BSR) reported a net revenue of VND73.85 trillion ($3.21 billion), VND2.07 trillion ($90 million) in gross profit, and VND1.34 trillion ($58.26 million) in pre-tax profit in the first nine months of this year.
|BSR acquired $58.2 million in pre-tax profit in nine months
In the third quarter alone, BSR acquired VND22.98 trillion ($999.13 million) in net revenue and VND753 billion ($32.74 million) in gross profit. The gross profit margin increased to 3.28 per cent compared to the 2.61 per cent of the first six months.
During the past time, the global oil market saw big fluctuations. Notably, after an uptrend in price in the first nine months of 2018 and the accelerated growth period in the first quarter of this year, the selling price started to decrease in late May.
This put pressure on the company in maintaining operations due tothe shrinking difference between the price of products and materials, thus the group acquired less profit during the period.However, petroleum and oil are essential products, thus, the company still has to maintain its operations to meet market demand.
During the nine months, Dung Quat oil refinery operated at 107 per cent of its designed capacity, generating 5.17 million tonnes of products. The manufacturing cost as of the end of August decreased by 6.1 per cent on-year. The average selling price of products decreased by 5.9 per cent.
According to the report on the short-term potential of the energy sector published by the US Energy Information Administration (EIA), the selling price of Brent may reach $59 perbarrel in the fourth quarter of this year, unchanged since early October. The stable selling price will be a favourable condition for petroleum groups, including BSR to increase the profit margin.
Especially, since November 1, 2019, the export-import tax for crude oil will be 5 per cent. If the products are originated from countries and regions which do not enjoy most favoured nation status in Vietnam, such as Azerbaijan and Lybia, the tax will be removed. This will create favourable conditions for BSR to diversify its crude oil import sources.