How Did Binh Son Refining and Petrochemical Achieve a Nearly 21-Fold Profit Increase in Q1?

Binh Son Refining and Petrochemical (BSR) has delivered a stellar financial performance in the first quarter of 2026, with net profit soaring by an astonishing 20.7 times compared to the same period last year, reaching 8.265 trillion VND. This remarkable achievement is underpinned by a nearly 44% increase in revenue, which surpassed 45.919 trillion VND. The company's core products, diesel and RON 95 gasoline, were the primary drivers of this revenue growth, accounting for over 46% and nearly 32% of total revenue, respectively.

The company's profitability was significantly boosted by a substantial increase in gross profit, which surged by almost 25 times to over 9.506 trillion VND. This was largely due to a slight increase in the cost of goods sold, resulting in a gross profit margin of 21%, a dramatic improvement from the approximately 1% margin seen in the previous year. Furthermore, financial revenue saw a nearly 14% increase, primarily from bank deposits, although financial costs also rose due to foreign exchange losses.

BSR attributes this profit windfall primarily to the sharp increase in crude oil prices during the first quarter, which climbed from around $66.8 per barrel in January to nearly $103.89 in March. This contrasts sharply with the declining crude oil prices observed in the first quarter of 2025. Additionally, the spread between crude oil prices and refined product prices widened considerably compared to the previous year, further enhancing BSR's margins. The company's strong financial results have already enabled it to surpass its entire 2026 net profit target of 2.162 trillion VND.

Looking ahead, BSR has set an ambitious consolidated revenue target of 154.140 trillion VND for 2026, a 7% increase from the previous year. The Dung Quat refinery, which has been operational since 2009 and currently meets 30-35% of Vietnam's fuel demand, is undergoing a significant upgrade and expansion. This project aims to increase processing capacity and enhance its ability to handle a wider variety of crude oil types, positioning BSR for continued growth and improved efficiency in the evolving energy market.