Binh Son Refining and Petrochemical files for HNX listing

Thursday, Jun 04, 2020 07:30

Engineers work at Dung Quat Oil Refinery of Binh Son Refining and Petrochemical Corporation (UPCoM: BSR). The company in the first quarter of the year posted a loss of nearly VND2.35 trillion due to oil prices' slump. — VNA/VNS Photo Huy Hung

Binh Son Refining and Petrochemical Corporation (BSR) has filed for listing on the Ha Noi Stock Exchange, the northern market regulator said on Tuesday.

The company plans to list more than 3.1 billion shares on the northern stock market, representing its charter capital of VND31 trillion (US$1.34 billion).

BSR is trading its shares on the Unlisted Public Company Market (UPCoM) with code BSR.

If approved, BSR will become the largest listed firm by charter capital on the Ha Noi Stock Exchange (HNX).

The two largest ones now are Asia Commercial Bank (ACB) with 1.66 billion shares and Sai Gon-Ha Noi Bank (SHB) with 1.46 billion shares.

BSR shares soared 7.5 per cent to trade at VND7,200 apiece on Wednesday.

The largest refining and petrochemical firm debuted on UPCoM on March 1, 2018 at VND31,300 per share.

Prior to its debut, BSR in January 2018 sold 241.5 million shares or 7.7 per cent stake to gain VND5.56 trillion for the State.

The company last year earned VND102.8 trillion worth of total revenue and VND2.87 trillion worth of post-tax profit.

Last year’s total revenue increased nearly twice from 2018’s figure and total post-tax profit jumped nearly 13 times.

The company has trimmed its total revenue and post-tax profit targets for 2020 by 21.5 per cent and 59 per cent on-year to VND80.7 trillion and VND1.18 trillion, respectively, if crude trades at $60 a barrel on average in the year.

In January-March, BSR recorded a net loss of nearly VND2.35 trillion as oil prices dropped sharply from an average of $67 a barrel at the end of 2019 to $31.8 a barrel in the first three-month period, caused by the global coronavirus outbreak, which dampened global trade and economic growth.

Oil prices have rebounded in recent weeks after hitting negative $37.63 a barrel on April 20. US crude benchmark WTI gained 2.8 per cent to trade at $37.84 a barrel on Wednesday.

Despite the recovery, BSR estimated it will suffer a loss of VND2 trillion in the second quarter. According to Bao Viet Securities Co (BVSC), the global pandemic may be controlled in the remaining months, global trade and crude prices will recover and move up steadily.

BSR is also expected to develop a plan in which its parent National Oil and Gas Group (PetroVietnam or PVN) will cut its ownership in the firm from 92.12 per cent. — VNS

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