Binh Son Refining and Petrochemical Company (BSR) reported pre-tax profits of VND1.3 trillion (US$57.1 million) in the first quarter of 2018, up 46 per cent compared to the quarterly target.

BSR is a subsidiary of Viet Nam National Oil and Gas Group (PetroVietnam, PVN) and operator of the $3 billion Dung Quat Oil Refinery in the central province of Quang Ngai, the first oil refinery in the country.

The company earned VND24.1 trillion in the first quarter of this year, up 25 per cent year-on-year. Indicators such as manufacturing output and consumption increased by 11 per cent compared to the quarterly plan.

At a seminar held on March 30 in the central city of Da Nang, Deputy General Director of PVN Le Manh Hung said any of PVN’s subsidiary while converting to a joint stock company should be aware that equitisation was an inevitable target.

According to Hung, to well manage BSR and PVN’s units, company leaders should, first of all, have a firm grasp of management knowledge.

“Corporate governance means human governance in the process of production and business as well as common target governance,” Hung said, asking BSR to invest heavily in systems and management tools while converting into a joint stock company.

BSR earned VND5.5 trillion ($244.5 million) through the sale of nearly 242 million shares during its initial public offering (IPO) held on January 17.

The sale, organised on HCM Stock Exchange, is Viet Nam’s largest IPO this year and is part of the government’s drive to privatise State-owned enterprises to improve their performances.

The quantity of shares was equivalent to 7.79 per cent of BSR’s charter capital, offered at a starting price of VND14,600 per share.

At this price, BSR is valued at $2 billion, making it the largest firm ever to hold an IPO.

The auction attracted 4,079 domestic and foreign investors, including 3,964 individuals and 115 organisations, registering to purchase 652 million shares.

Sixty-two organisations and 561 individuals won the bids. — VNS