BSR proactively builds scenarios to respond to falling crude oil prices

Dung Quat NMLD has always been operated safely, stably and continuously at optimal capacity. At times, the plant's capacity reached 118%.

In 2024, revenue will reach nearly 123,000 billion VND

BSR has just announced its audited financial report with positive results such as net revenue from sales and service provision reaching 122,986 billion VND; payment to the State budget reaching 13,554.5 billion VND and profit after tax reaching 316.7 billion VND.

Although the results are somewhat lower than in 2023, BSR's revenue in 2024 is still significantly higher than in the previous period, far exceeding the plan set by the board of directors.

This is an encouraging result in the context of strong fluctuations in crude oil prices, leading to narrowing profit margins in the oil refining industry. Many oil refineries in the world and in Vietnam have been forced to restructure or suspend operations.

Faced with that challenge, BSR has proactively and drastically implemented solutions to respond to the very complex market developments to minimize losses as well as seize opportunities when the market shows positive signs; continue to improve management capacity, market forecasting ability and proactively propose solutions to adapt flexibly.

Over the past year, Dung Quat Oil Refinery has always operated safely, stably and continuously at optimal capacity. BSR has also conquered new operational limits, at times the plant operated at 118% capacity and achieved an output of more than 6.6 million tons of various types of gasoline and oil.

BSR's closing equity for fiscal year 2024 reached VND55,491.5 billion. Regarding investment, during the year, BSR continued to disburse investment for the Dung Quat Oil Refinery Upgrade and Expansion Project, the Project to add crude oil tanks to Dung Quat Oil Refinery and other projects with a total value of VND1,352.5 billion.

In 2025, BSR set a target of output of 6.69 million tons; revenue of 114.5 trillion VND; budget contribution of about 12,992 billion VND; estimated after-tax profit of about 746 billion VND; investment value of about 1,740 billion VND.

This target has been adjusted higher, based on the results exceeding expectations achieved in 2024. However, given concerns about the development of crude oil prices in the world, the profit target is still calculated cautiously. Compared to the implementation level in 2024, BSR's leadership still expects the enterprise to regain profit growth momentum in 2025.

In addition to 3 scenarios to cope with crude oil prices, BSR also proposed a series of solutions to cope with fluctuations.

Build multiple scenarios and synchronized solutions

BSR always focuses on forecasting to be proactive in production and business, ensuring flexible response and adaptation to market fluctuations. Previously, BSR's professional department assessed that 2025 would continue to be a challenging year for the market.

Dated Brent crude oil prices reversed and fell sharply below $70/barrel on March 5, 2025, compared to an average price of more than $79/barrel in January 2025, after the US announced many new policies.

In addition, the Organization of the Petroleum Exporting Countries (OPEC) decided to increase production again from April 2025 to 138,000 barrels/day. Oil prices are also under downward pressure from geopolitical and economic factors, including increased economic tensions due to US tariff policies, the Russia-Ukraine peace process promoted by the US, and signs of cooling down in the Middle East.

At the latest meeting of the Steering Committee for responding to the decline in crude oil prices, BSR General Director Nguyen Viet Thang directed the activation of production and business operations from VUCA to BANI, clearly analyzed and proposed 3 sets of scenarios for BSR: Real scenario, management scenario and forecast scenario so that any fluctuations in oil prices will have specific response solutions.

In addition, Mr. Thang also emphasized that BSR needs to take advantage of the price difference between input materials and output products, which is still at a good level, to increase the capacity of Dung Quat Refinery, first of all, increasing the capacity of some workshops with room; continue to maintain good relationships with customers, apply flexible sales policies, compete with imported goods, and maintain Dung Quat Refinery inventory at a stable level.

At the same time, BSR synchronously deploys solutions on production operations, business - regulation and investment - finance. In which, production operations are guaranteed to be safe, stable, and maintain high capacity.

Regarding business and regulation, continue to purchase crude oil to optimize capacity, maintain low inventory, urge customers to receive goods on schedule, and consider suitable warehouse rental options. Promote production of new products such as plastic pellets and intermediate petroleum. Regarding investment and finance, optimize cash flow and investment activities, ensuring strong financial resources for the company.

Regarding management, continue to review and improve production processes to increase efficiency and cut unnecessary costs. Complete the quality management system according to international standards, ensuring high-quality products. Expand domestic and international cooperation, exchange experiences, acquire new technologies, and improve competitiveness.

For scientific research and innovation, it is necessary to promote research and application of advanced technology to improve productivity, quality and production efficiency. Strengthen digital transformation, apply AI and information technology in management and operation. Research and invest in renewable energy, circular economy, towards sustainable development and environmental protection.

By flexibly applying appropriate solutions, combining solidarity and creativity, BSR is confident in overcoming challenges and proactively responding to oil price fluctuations. The company will continue to optimize production activities, control costs, improve operational efficiency and promote digital transformation. At the same time, it will take advantage of opportunities from the market and macroeconomic policies to ensure the completion of production and business targets in 2025, maintaining its core role in the Vietnamese petrochemical industry.

Linh Dan