In 2025, despite encountering significant challenges, Bình Sơn Refinery excelled in achieving its production and business objectives.- Photo courtesy of the company

HÀ NỘI — After successfully navigating market turbulence and achieving early completion of its 2025 targets with a series of notable accomplishments, Bình Sơn Refining and Petrochemical JSC is now preparing for what is expected to be an even more challenging period ahead.

Market forecasts suggest that larger 'storms' are approaching, requiring the company to adopt proactive and focused measures as it enters 2026.

The global energy market in 2025 experienced heightened volatility, closely intertwined with geopolitical developments and shifts in global demand.

Brent crude oil prices declined by nearly 20 per cent over the year, falling from around US$79 per barrel to approximately US$64 per barrel by year-end, with extreme fluctuations at times exceeding 16 per cent within a single week.

At the same time, product pricing structures came under pressure from intense competition among refining and petrochemical complexes across the region.

The appreciation of the US dollar against the Vietnamese đồng further increased the cost burden of crude oil imports.

Compounding these challenges were the accelerating energy transition and policies promoting expanded use of E10 fuel, which required Bình Sơn to recalibrate its production and business strategies in response to evolving market conditions.

Nevertheless, energy demand continued to grow, supported by public investment, industrial recovery, and rising transportation needs, creating opportunities alongside the challenges.

In 2025, BSR faced what could be described as dual pressure: the need to meet and surpass mandated growth targets while defending its domestic market position and strengthening its domestic and global presence, and the need to adapt swiftly to unpredictable financial markets and a global energy landscape being reshaped by new technologies and sustainability imperatives.

Guided by a spirit of proactivity and innovation, the company focused on managing volatility while advancing digital transformation and restructuring its business operations. These efforts enabled BSR to overcome significant headwinds and complete its 2025 plan ahead of schedule.

In 2025, Bình Sơn operated the Dung Quất Oil Refinery safely and steadily, achieving an average conversion capacity of 120 per cent.- Photo courtesy of the company

Good results

Operationally, BSR maintained a safe and stable performance at the Dung Quất Refinery, achieving an average normalised operating rate of 120 per cent.

This high level of utilisation directly contributed to revenue growth and improved profitability.

The company also capitalised on favourable market windows when crude oil prices declined, while product prices remained resilient or, at times, moved counter to the downward trend in feedstock prices.

By closely monitoring market dynamics and continuously updating business scenarios based on crude oil price movements and crack spreads, Bình Sơn was able to adjust throughput and accelerate product sales when conditions were favourable.

During the second half of the year, the refinery operated at an average normalised rate of 122 per cent, and profits increased by 113 per cent compared with the first half, despite a seven per cent drop in crude oil prices and the impact of harsh weather conditions.

Bình Sơn also continued to diversify its product portfolio, introducing a range of higher-value products, including specialised polymer resins, sustainable aviation fuel (SAF), granular sulphur, and E10 RON 95 gasoline.

These new offerings made a meaningful contribution to revenue growth, while the company also expanded its international trading activities with products like diesel oil, fuel oil, and RFCC naphtha, further strengthening its regional market presence.

Financial discipline remained a key pillar of BSR's performance. The company optimised cash flow management, broadened its network of deposit banks beyond the State-owned commercial banking group, and intensified efforts to reduce energy consumption, operational losses, and overall production costs.

As a result, cost savings in 2025 significantly exceeded the original plan, reinforcing the company's financial resilience.

The combined impact of these measures translated into strong business results. Production output, revenue, profit before tax, and State budget contributions all exceeded its set targets, underscoring the effectiveness of Bình Sơn's integrated approach to navigating a volatile operating environment.

Beyond financial performance, 2025 was also marked by several operational and strategic milestones.

Bình Sơn surpassed 100 million tonnes of cumulative output since the Dung Quất Refinery began operations and recorded 54 million safe man-hours. Internal energy consumption and losses were reduced to a historic low of 7.2 per cent.

The successful production of SAF, sustainable marine fuel oil, and E10 gasoline signalled the company’s initial steps toward a clean energy transition and the development of environmentally friendly products.

These achievements not only demonstrated the firm's ability to master new technologies but also positioned it for future growth in high-value, sustainable product segments, earning it recognition among Việt Nam's Top 10 Green ESG Enterprises in the industry and energy sector in 2025.

Bình Sơn's production output exceeded 7.9 million tonnes in 2025, the highest since the refinery began commercial operations, reaffirming its role as a cornerstone in ensuring national energy security.- Photo courtesy of the company

By completing a capital increase from VNĐ31 trillion to over VNĐ50.7 trillion ($1.9 billion), the company also strengthened its financial foundation, enhancing financial safety and improving its ability to respond to market volatility.

The completion of a fully integrated digital office system, incorporating electronic signatures and end-to-end online workflow processing, further advanced the firm's digital transformation agenda.

Brand value and creditworthiness were also reinforced, with Forbes Vietnam valuing the Bình Sơn brand at US$201.7 million and Fitch Ratings maintaining a BB+ rating with a stable outlook for the third consecutive year.

At the same time, BSR continued to expand its social responsibility initiatives, surpassing VNĐ1 trillion in cumulative community contributions.

Weathering the storm

Looking ahead to 2026, market forecasts from Wood Mackenzie and Platts indicate that Brent crude may fall below US$60 per barrel due to prolonged oversupply from OPEC+ producers.

Under such conditions, Bình Sơn's consolidated revenue could fall significantly short of planned levels, particularly as the refinery is already operating well above its design capacity.

Recognising these risks, the company is preparing a coordinated set of responses aimed at sustaining performance in a challenging environment.

The firm plans to continue prioritising stable, safe, and high-capacity operations while optimising costs, product structure, and cash flow.

Efforts are also under way to restore operations at the Dung Quất biofuel plant to increase the supply of E100 for blending E5 and E10 gasoline, while expanding external services and business activities through subsidiaries.

It is also pursuing more ambitious initiatives, including research and pilot programmes to raise refinery throughput to between 123 and 125 per cent of design capacity, accelerating innovation and the development of new products, and expanding international trading activities.

In 2026, Bình Sơn continued to enhance its international business, expanding its consumer market in Southeast Asian countries. — Photo courtesy of the company

Bình Sơn is also exploring opportunities to increase output beyond the refinery through toll processing, trading, and potential mergers and acquisitions, along with the development of external service offerings.

With a solid foundation built in 2025, a clearly defined strategy, and strong support from PetroVietnam, Bình Sơn is entering 2026 in a proactive and confident posture.

Despite the challenges ahead, the company is positioning itself to continue delivering sustainable value for its stakeholders, the energy sector, and the broader national economy./.