A view of Binh Son Refining and Petrochemical Co Ltd (BSR). (Photo vietnamnet.vn​)

Hanoi (VNA) - The Binh Son Refining and Petrochemical Company (BSR) reported pre-tax profits of 1.3 trillion VND (57.1 million USD) in the first quarter of 2018, up 46 percent compared to the quarterly target.

BSR is a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam, PVN) and operator of the 3 billion USD Dung Quat Oil Refinery in the central province of Quang Ngai, the first oil refinery in the country.

The company earned 24.1 trillion VND in the first quarter of this year, up 25 percent year-on-year. Indicators such as manufacturing output and consumption increased by 11 percent compared to the quarterly plan.

At a seminar held on March 30 in the central city of Da Nang, Deputy General Director of PVN Le Manh Hung said any of PVN’s subsidiary while converting to a joint stock company should be aware that equitisation was an inevitable target.

According to Hung to well manage BSR and PVN’s units, company leaders should, first of all, have a firm grasp of management knowledge.

“Corporate governance means human governance in the process of production and business as well as common target governance,” Hùng said, asking BSR to invest heavily in systems and management tools while converting into a joint stock company.

BSR earned 5.5 trillion VND (244.5 million USD) through the sale of nearly 242 million shares during its initial public offering (IPO) held on January 17.

The sale, organised on HCM Stock Exchange, is Vietnam’s largest IPO this year and is part of the government’s drive to privatise State-owned enterprises to improve their performances.

The quantity of shares was equivalent to 7.79 percent of BSR’s charter capital, offered at a starting price of 14,600 VND per share.
At this price, BSR is valued at 2 billion USD, making it the largest firm ever to hold an IPO.

The auction attracted 4,079 domestic and foreign investors, including 3,964 individuals and 115 organisations, registering to purchase 652 million shares.

Sixty-two organisations and 561 individuals won the bids.-VNA