The Dung Quat Oil Refinery earned nearly VND1.8 trillion (US$80.4 million) in after-tax profit in the first quarter of the year, achieving 30 per cent of its annual target.

Figures released Sunday by Binh Son Refining and Petrochemical Company (BSR), the plant’s operator, showed revenues of VND21 trillion in the first three months of the year and contributing more than VND2.4 trillion to the State budget.

At the end of last year, BSR targeted revenues of VND62.4 trillion in 2017, VND10.1 trillion lower than the previous year. It expected a profit of VND1.68 trillion.

Tran Ngoc Nguyen, BSR’s general director said the 2017 plans were based on an oil price scenario of $50 a barrel. In addition, it planned to halt production for 52 days for its third overall maintenance in the middle of the year.

The Ministry of Finance (MoF) has said that the crude oil price in the first half of the month was $57 a barrel, $7 higher than the previous estimate.

With the increasing trend of oil prices this year, the Dung Quat Oil Refinery’s business results will be positive, Nguyen said, adding that its capacity reached 105 per cent while its energy consumption index dropped significantly.

“This has been a cautious plan. However, we have been trying to reach higher results as the oil prices have been on an upward trend on world markets, while the overall maintenance plan could take less time than thought,” he added.

BSR has also implemented an expansion plan of the Dung Quat Oil Refinery Plant. The Quang Ngai Province People’s Committee is expected to complete land clearance for the expansion by the end of June.

Le Manh Hung, deputy general director of the Viet Nam National Oil and Gas Group (PetroVietnam) said BSR should focus on its privatisation and expansion as well as upgrading technologies.

“BSR will face competition when other refineries go into operation. That is why it should review its product distribution system,” said Vu Truong Son, PetroVietnam’s general director cum chairman.

Son also asked BSR to ensure progress of overall maintenance as the work would have a major effect on its privatisation.

Last year, BSR reported revenues of nearly VND75.2 trillion, a profit of VND5 trillion and a VND12.4 trillion contribution to the State budget.

During seven years of operation, the $3billion-project has contributed $7 billion to the State budget, showing the effectiveness of the first refinery project in Viet Nam. — VNS