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Fuel producer posts $181 mln loss

By Dat Nguyen   July 22, 2020 | 09:30 pm PT
Fuel producer posts $181 mln loss
Workers in Dung Quat Oil Refinery in the central province of Quang Ngai. Photo courtesy of Binh Son Refining and Petrochemical Jsc (BSR).
Binh Son Refining and Petrochemical Jsc has reported a loss of VND4.2 trillion ($181 million) in the first half due to lower fuel demand.

BSR, a subsidiary of state oil company Petrovietnam that operates the Dung Quat Oil Refinery in the central region, said crude oil prices fell 74 percent year-on-year to $18.5 per barrel in April due to lower demand globally caused by restrictions to curb the spread of Covid-19.

Falling domestic travel demand and the ban on international flights also caused sales to drop in April and May, it said in a statement.

There were signs of improvements starting last month when it reported a post-tax profit of VND1.4 trillion ($60.4 million) as oil prices started to rise in May.

The rebound in domestic aviation, with 70 flights a day in June compared to just over 40 in the same month last year, and a resumption in economic activities is reviving fuel demand.

Vietnam’s other fuel giants, such as distributors Petrovietnam Oil and Petrolimex, reported multi-million dollar losses in the first quarter.

The oil industry expects profits to fall 59 percent this year, according to financial data provider FiinGroup.

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