12.07.2020, 19:53

Vietnam’s largest refinery seeks tax exemptions after $101mln loss on pandemic

Vietnam’s largest refinery seeks tax exemptions after $101mln loss on pandemic

The country’s largest refining and petrochemical firm said it need the support to overcome difficulties due to the impacts from COVID-19 pandemic and the disorder of global oil industry, Viet Nam News cited information from the oil firm.

The company targets total output of 5.56 million tonnes of products for 2020, total revenue of VND80.68 trillion ($3.47 billion) and total after-tax profit of VND1.18 trillion ($50.7 million).

With the loss in first quarter, the after-tax profit in 2020 is expected to drop nearly 60 percent on-year as crude prices are expected to trade at $60 a barrel on average this year.

According to Binh Son, the main reason for the loss was that it must buy crude oil in advance according to contracts signed from November to December last year with price formulas based on reference crude oil prices and price surcharges at that time when the Brent oil price was about $65-70 per barrel.

At time it processed and sold the products in Q1, the oil prices fell to their lowest of $13.2 per barrel on April 21, causing huge losses of inventory prices.

At the same time, consumption was affected by social distancing due to COVID-19.

To deal with the current difficulties, BSR proposed that the Government and relevant ministries and agencies develop mechanisms to ensure that petroleum products of its existing Dung Quat oil refinery continue to be consumed in the local market.

It also asked for the exemption of environmental protection tax for internal burning fuel for production.

In June, the company filed for listing 33.1 billion shares on the Hanoi Stock Exchange, representing its charter capital of VND31 trillion ($1.34 billion). If approved, BSR will become the largest listed firm by charter capital on the exchange. 

BSR shares are being traded around VND7,000 a share on the Unlisted Public Company Market (UPCoM). 

Source: Viet Nam News