Binh Son Refining and Petrochemical JSC (BSR) has just been assigned a rating of BB – the outlook is positive – and a standalone credit profile of BB-.
On October 2, BSR held an initial rating results announcement ceremony in Hanoi with the participation of Ho Sy Hung, vice chairman of the Commission for the Management of State Capital at Enterprises, Bui Minh Tien, member of Petrovietnam's Board of Members, Nguyen Van Hoi, chairman of BSR, Bui Ngoc Duong, CEO of BSR, leaders of the State Securities Commission of Vietnam, as well as commercial banks, partners, and consultant firms.
Fitch Ratings' assessment of BSR is similar to that of its parent company PetroVietnam.
Bui Ngoc Duong, CEO of BSR said, "We believe that by obtaining an international credit rating, we will be able to broaden our funding sources and develop a sustainable debt financing strategy. It will be a perfect testimonial of our strength and the confidence that is placed in our strategic, operational, and financial profile."
BSR plays a key role in refining and processing for Petrovietnam, supplying 35 per cent of the country's fuel demands and accounting for 43 per cent of all oil refinery capacity.
With its strong financial standing, BSR has around VND19.8 trillion ($835.5 million) in cash balance, VND31 trillion ($1.3 billion) in charter capital, over VND67 trillion ($1.6 billion) in total revenue, and VND75 trillion ($3.2 billion) in total assets.
|Bui Ngoc Duong, CEO of BSR |
Bui Minh Tien from Petrovietnam said that the company plays a critical role in ensuring the energy security of the nation. As BSR is one of the most important subsidiaries in the value chain, Petrovietnam will continue to provide it the utmost support.
"Our commitment to BSR is well recognised by Fitch Ratings, as can be seen in the full rating report it published that assesses the parent support and links as high. We will not be complacent about where we are now. We will look for additional enhancements in our rating levels as we grow into the future," Tien asserted.
Over the years, BSR has operated the Dung Quat refinery factory at optimal capacity, meeting the increasing demands of the market. Even during shortages, BSR has cemented its position as a key fuel producer, contributing to stabilising the supply and partially compensating for the shortage of petrol, which is vital to drive the national economy.
The Dung Quat refinery factory is maintaining the high capacity of its production activities. In the first eight months of the year, the production and business targets were all met or exceeded.
This credit rating by Fitch Ratings will be a useful tool for investors to identify and evaluate potential opportunities, and for BSR and Petrovietnam to realise the strategic goals they have to develop the economy.
| ||Foreign ownership ratio in Binh Son Refinery slips |
From 4.74 per cent two years ago, the foreign ownership ratio in Binh Son Refining and Petrochemical Co., Ltd. (BSR) – the operator of Dung Quat Oil Refinery – has slipped to 0.07 per cent.
| ||Binh Son Refining withdraws HNX listing application |
Binh Son Refining and Petrochemical Joint Stock Company (BSR) has sent a document to the Ha Noi Stock Exchange (HNX) to withdraw its registration for listing shares on the northern bourse.
| ||More oil refineries required in Vietnam |
Highly volatile petroleum prices in the global market and the fact that the current domestic supply can only meet about 70 per cent of the demand have underlined the need for more refineries in the country.
| ||Dung Quat Oil Refinery to increase capacity |
Deputy Prime Minister Tran Hong Ha signed Decision No.482/QD-TTg on May 5 approving the investment planning to upgrade Dung Quat Oil Refinery located in the central province of Quang Ngai to increase output.