BRS value assessed at US$3.2 billion

The corporate value of Binh Son Refining and Petrochemical Company Limited (BSR) was assessed at VND72 trillion (US$3.2 billion). — Photo courtersy of BSR

The corporate value of Binh Son Refining and Petrochemical Company Limited (BSR) was assessed at VND72 trillion (US$3.2 billion), according to a decision signed by Minister of Industry of Trade Tran Tuan Anh on Wednesday.

Of that figure, more than VND44.9 trillion is the State-owned capital. With this assessment, BSR is the largest-ever Vietnamese company by market capitalisation.

The corporate value assessment is a basis for BRS, a member of the Vietnam National Oil and Gas Group (PetroVietnam), to carry out necessary steps before equitisation.

BSR plans to launch its initial public offering (IPO) in the fourth quarter of this year, with a 5-6 per cent stake. The remainder will be offered to strategic investors and institutional investors (banks and financial and credit institutions) in order to develop the segment of liquefied petroleum gas and processing.

Earlier, BSR sent invitations to 15 domestic and foreign investment funds in preparation for its IPO. The equitisation progress will allow investors to be early benefactors of the company’s plan to develop the national oil refinery market.

Many potential investors from Japan, Venezuela, Russia and the Republic of Korea have expressed their interest in BSR shares. The company’s return on equity was about 21 per cent in 2015, with an after-tax profit of VND6 trillion and about 14 per cent in 2016 with an after-tax profit of VND5 trillion. These are seen as positive signs toward the company’s successful equitisation.

The PetroVietnam made a decision on BRS’s equitisation on November 6, 2015, according to regulation under Government Decree 59/2011/ND-CP on converting State-owned enterprises into joint stock companies and the Decree 189/2013/ND-CP dated November 20, 2013 of the Government amending and supplementing a number of articles of decree 59.

BSR, which has been managing and operating Dung Quat Oil Refinery for many years, has achieved robust production and trade results. Its products include propylene, polypropylene, liquefied petroleum gas, petrol RON 92 and 95, bio-fuel E5 and E10, JET A1 aviation fuel, gasoline, diesel and brimstone.

Up to early May, BSR had produced about 47 million tonnes, earning nearly US$40 billion in revenue. Of which, more than $7 billion went to the State budget, which doubled the capital invested in the company. — VNS