Vietnam’s Dung Quat refinery sees 2017 gross profit down on lower oil prices

By VnExpress   February 20, 2017 | 03:20 pm GMT+7

The refinery's shorter production period due to routine maintenance will also contribute to falling revenues.

Dung Quat refinery, Vietnam's sole such facility, is expected its gross profit to plunge 66 percent this year to VND1.68 trillion ($74 million) on an expected drop in crude oil prices and shorter production time, its operator firm said.

Revenue this year by state-owned Binh Son Refining and Petrochemical Co, an affiliate of national oil and gas PetroVietnam group and which operates the $3 billion refinery, is expected at VND62.4 trillion, down 17 percent from 2016, the company said in its financial statement published for the first time.

“The target has been set cautiously, based on the scenario with oil prices at $50 per barrel," Chief Executive Officer Tran Ngoc Nguyen told VnExpress, "but we will strive [for higher revenues] since oil prices have edged up on the world market and the refinery’s planned maintenance plan can be shorter than initially expected.” 

The routine maintenance, its third since operation of the refinery capable for processing 6.5 million tons of crude oil a year (130,500 barrels per day) began in 2011, has been scheduled for mid-2017 and last 52 days, Nguyen said.

Binh Son has planned to conduct its initial public offering by late June 2017.

The refinery, in the central province of Quang Ngai, now meets around a third of Vietnam's demand for fuel and oil products.

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