Dung Quat Refinery in Quang Ngai Province, central Vietnam. Photo courtesy of Binh Son Refining and Petrochemical Jsc.
The Binh Son Refining and Petrochemical Jsc (BSR) posted a loss of VND4.3 trillion ($184 million) in the first half this year due to Covid-19 impacts.
In its financial statement, the company, which operates the Dung Quat Oil Refinery in the central region, attributed the loss to oil prices plunging 71 percent from January to $18.5 per barrel in April as the pandemic slashed demand.
The latest loss compares to a post-tax profit of VND705 billion in the first half of last year when oil prices hit an all-year high in April at $71.3 per barrel, the company said.
BSR’s H1 revenues fell 39 percent year-on-year to VND31.7 trillion, the statement said.
The company has been making efforts to contain the plunge. It has managed to reduce sales expense by 14 percent and managing costs by 33 percent year-on-year.
As oil prices started to recover in May, the company was able to record a post-tax profit of VND1.4 trillion in June alone.
The company’s auditor has expressed concerns about the debt of Central Biofuels Jsc (BSR-BF), a company in which BSR holds a 65.54 percent stake.
This unit had an accumulated debt of VND1.08 trillion by the end of June and is short of funds to repay debts. It has shut down its factory and the auditor is concerned about the ability of the subsidiary to continue operations.