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Dung Quat oil refinery is ready for the growth impetus in 2019

Dung Quat oil refinery is ready for the growth impetus in 2019 - 

After nearly a year of changing the operating model to a joint stock company, Binh Son Refinery Joint Stock Company (BSR) has shown the strong steps even in the most difficult times of the market to affirm as a leading company in backyard of  PetroVietnam (PVN) with a good result “stable production and efficient business”.

The successes of BSR in 2018 may be summarized as follow: BSR continuously operated Dung Quat oil refinery safely, stably with an efficiency of 108% of designed capacity. BSR has completed production targets with a total output of over 7 million tons of various products for 38 days ahead of the plan, achieved a total turnover of more than 112 trillion VND, paid to the state budget more than 11 trillion VND and reached a profit before tax of nearly 3.8 trillion VND. BSR became one of the units of PVN with the most turnover and state budget payment.

The Engineers are operating the plant in the Central Control Combine (CCC).

In the first quarter of 2019, BSR achieved the encouraging results as more than 1.7 million tons of various products; net turnover of 23,054 billion VND, the State budget payment of 2,443 billion and profit after tax of more than 606 billion in spite of unpredictable changing the crude oil in the world from the fourth quarter ò 2018 to the end of February of 2019.

It is memorable that, in the fourth quarter of 2018, the business status of BSR was rather "gloomy" when its after-tax profit was minus 950 billion dong by abnormal change of the crude oil prices in the world market as Dated Brent crude oil decreased from USD 86.16/barrel on October 4, 2018 to USD 50.21/barrel on December 28 /2018, the difference between the prices of the main products in output and the crude oil in material input (crack spread) was low, even at some time when the price of raw materials was higher than the selling price of products. All that greatly affected the production and business results of BSR in the first quarter of 2019.

From the end of February 2019, the oil market began to prosper, the difference between prices of output product and input crude oil was widened, BSR actively applied many drastic and timely solutions such as operating the Dung Quat oil refinery safely, stably at 108% of design capacity, flexibly adjusting production mode with an efficient structure of products by demand of the market, promoting product sales, implementing optimal energy and technology solutions, strengthening to control consumption norms and cost savings, etc. As a result, BSR has minimized the impact of the market and significantly improved profits in the first quarter of 2019 in comparison with the previous quarter.

2019 is forecasted to be a year of many difficulties and challenges for BSR but also opens up many opportunities for BSR to develop sustainably.

The prices of the crude oil and the products unpredictably changing and adversely affecting the oil refining industry.

The Azeri crude oil from Azerbaijan is the strategic source of the crude oil for Dung Quat Oil Refinery which is the subject to the import tax rate of 5% that will be the result to reduce the processing efficiency. Besides, fluctuation of the currency exchange rate, competition of petroleum sources imported by Vietnam from countries with which Vietnam to join the free trade agreements and petroleum products from Nghi Son Refinery and other factors will be the main difficulties forecast to affect the production and business efficiency of BSR.

Dung Quat Oil Refinery by night

To complete the production and business tasks in 2019, the Management Council and Directorate of BSR have Proposed the solutions: Sustaining safe and stable Operation of Dung Quat oil refinery at 106% - 108% of the design capacity, Optimizing plant operation through adjusting product structure for high efficiency according to market demand.

Besides, BSR will also apply many synchronous solutions such as optimizing operation costs, applying the innovations and technical improvements, promoting product sales, reducing the inventory crude oil and products to an optimal level, implementing energy and technology solutions, strengthening to control consumption norms, cost savings ... BSR will also actively and drastically implement restructuring enterprises under the direction of PVN with focusing on divestment of PVN from BSR after it’s equitization; promote the project for upgrading and extending Dung Quat oil refinery in accordance with the plan.

VietnamEnergy.vn

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