Vietnam’s Dung Quat oil refinery meets one-third of 2017 revenue target in Q1

By Anh Minh   March 28, 2017 | 04:59 am PT
Vietnam’s Dung Quat oil refinery meets one-third of 2017 revenue target in Q1
Dung Quat oil refinery : Photo by VnExpress
The refinery has projected its annual revenue target for this year to fall 17 percent.

Vietnam's Dung Quat oil refinery, the country's sole such facility, posted revenue of VND21 trillion ($923 million) in the first quarter ending March, or 33 percent of its full-year target, the plant's operator Binh Son Refining and Petrochemical Co (BSR) said.

The result paints a bright picture after state-owned BSR has projected revenue this year at VND62.4 trillion, down 17 percent from 2016.

The company has expected profits in 2017 to plunge 66 percent to VND1.68 trillion due to falling crude oil prices and shorter production time, following a routine maintenance work.

“The target was set based on the scenario with oil prices at $50 per barrel,” Chief Executive Officer Tran Ngoc Nguyen told VnExpress.

With global oil prices edging up, BSR, an affiliate of national oil and gas group PetroVietnam, is hoping its $3-billion refinery will surpass the initial targets set for the year.

Maintenance at Dung Quat, designed to process 6.5 million tons of crude oil a year (130,500 barrels per day), is scheduled to start on June 5 and will take 52 days.

This is the third round of routine maintenance at the refinery located in the central province of Quang Ngai.

It began operation in 2009, and now meets around a third of Vietnam's demand for fuel and oil products.

BSR has planned to hold an initial public offering by late June 2017.

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