The company (BSR) last week achieved a credit rating of BB, accompanied by a positive outlook and a standalone profile of BB- by international credit rating agency Fitch Ratings.

Fiscal health underpins BSR’s rating ascent, illustration photo

Such accolades reinforce the firm’s robust fiscal health in an increasingly dynamic energy market. BSR’s CEO Bui Ngoc Duong said, “Securing an international credit rating not only augments our capital access but emphatically underscores the market’s trust in our strategic foresight and operational acumen.”

BSR’s importance in the energy landscape is underscored by its role in refining and processing for PetroVietnam. Currently, it meets 35 per cent of Vietnam’s fuel requirements and accounts for 43 per cent of the nation’s total oil refining capacity.

A glance at BSR’s financial standing showcases a firm in strong stead, with liquid assets amounting to $835.5 million, a charter capital of $1.3 billion, revenues surpassing $1.6 billion, and a total asset base of $3.2 billion.

PetroVietnam representative Bui Minh Tien weighed in on BSR’s role in buttressing Vietnam’s energy security, articulating the company’s commitment to BSR.

“Fitch Ratings’ affirmation serves as an unequivocal testament to our unwavering support for BSR. Our focus is now centred on navigating the roadmap for further rating enhancements,” explained Tien.

The new rating, according to Tien, is a manifestation of the strategic synergy between Petrovietnam and BSR, spotlighting their financial stewardship. Such recognition not only validates current operations but also sets the tone for future endeavours, he added.

BSR’s operational prowess is further evidenced by its management of Dung Quat refinery factory, consistently operating at optimal capacity levels. The facility has been instrumental in addressing market needs, even during pressing times, showcasing its role in the national economic framework.

Recent market indicators have further burnished Dung Quat’s reputation, revealing that the facility’s production metrics have either met or exceeded their stipulated targets for the year.

This robust performance has not escaped the notice of industry observers. KB Securities Vietnam, in its recent analysis, earmarked BSR as a potentially lucrative stock proposition, attributing their bullish stance to a surprising uptick in the diesel spread.

“Under the national petroleum-gas reserve infrastructure planning approved in July, Vietnam will develop an infrastructure system near oil refineries with a storage capacity of 1-2 million tons of crude oil. We expect BSR’s crude oil input will be stable in both price and supply in the long term once the oil storage facility is built in the Dung Quat area,” KB Securities added.

Simultaneously, in a strategic alignment bid, BSR has initiated talks with Deloitte Vietnam to streamline its financial reporting in adherence to International Financial Reporting Standards.

Duong of BSR heralded the transition as congruent with the Ministry of Finance’s 2025 vision. “Implementing these standards will bolster BSR’s eligibility for an international market listing, facilitate capital arrangements, and boost investment appeal, especially during the expansion phase of the Dung Quat refinery,” Duong said.

The upward trajectory of global crude prices further positions BSR favourably. Amid rising crude oil prices, financial observers predict a robust performance for BSR in the last few months of this year, particularly noting the widening crack spread for diesel and jet A1 fuels.

On the equity front, BSR is transitioning its listing from the Unlisted Public Company Market to the Ho Chi Minh City Stock Exchange (HSX), having fulfilled eight of the nine required transfer criteria.

Additionally, in a move to expedite this shift, the firm last month sought the State Securities Commission’s assistance in regarding outstanding debt criterion.

Although a Q3 shift to the HSX was initially proposed, insiders now foresee a potential move in Q4, which is anticipated to bolster BSR’s capital mobilisation for business expansion.

“Transitioning to the HSX represents a pivotal step for BSR, underscoring its growth trajectory and poised to unlock a plethora of opportunities, further elevating its profile within the investment community,” a company representative said.

Bui Ngoc Duong - CEO, Binh Son Refining and Petrochemical JSC Dung Quat Refinery’s expansion and upgrade project is currently in the feasibility analysis phase, with tentative plans for integration and commercial operation by early 2028. The main purpose of the project is to improve refinery complexity, driven by national energy security, greater flexibility in the crude mix, and product slate optimisation. I hold a bullish view on BSR’s prospects. Our commitment remains steadfast in driving the national economy forward, acting as both a catalyst for growth and a beacon for energy security. Beyond that, we aim to deliver enhanced economic value to the government, elevate environmental standards, and provide more employment opportunities for our community.