Market volatility – A catalyst for BSR to accelerate

BSR establishes innovation center to realize breakthrough aspirations through science and technology

BSR accelerates strategic breakthroughs for green and sustainable development

Despite these challenges, BSR maintained stable operations and achieved strong growth. The Company produced over 3.84 million tons of products, earned VND 69,365 billion in revenue, contributed VND 7,411 billion to the State budget, and exceeded profit targets. This result reflects the Company’s collective efforts, timely decisions, and adaptive strategies in a volatile market.

Core operational and business solutions drive success

Under current market conditions, BSR has prioritized operational stability and enhanced forecasting capabilities. The Company proactively developed flexible operating scenarios based on oil price movements and continuously adjusted production plans accordingly. As a result, the Dung Quat Refinery has consistently maintained high utilization rates - reaching up to 124% at times.

BSR has also intensified efforts in scientific research, innovation, and digital transformation. The Company established an Innovation Center and maximized the capacity of its key processing units. Notably, the CDU unit increased its available capacity from 114% to 118%, with plans to push further to 120%. The RFCC unit reached near-maximum utilization of 110% by supplementing with intermediate feedstocks such as VGO and LSFO. Meanwhile, the KTU unit operated at 140% capacity, capitalizing on higher Jet-A1 prices to boost revenue. These technical and operational adjustments have enhanced production efficiency, reduced costs, and improved profit margins in the face of market volatility.

Despite continued market volatility, BSR has maintained safe and stable operations at the Dung Quat Refinery, ensuring domestic fuel supply and contributing to national energy security

In addition to production, BSR has demonstrated strong agility in business operations and supply chain management. The Company closely coordinated with Petrovietnam subsidiaries such as PVOIL, PV GAS, and PVNDP to optimize end-to-end value chain linkages - from raw material procurement to product distribution. This enabled stable product sales, well-managed inventory levels, and improved cash flow during challenging times.

A notable breakthrough in innovation was BSR’s successful launch and sale of Sustainable Aviation Fuel (SAF) in early June 2025. This milestone not only marks a commercial advancement but also affirms the Company’s capabilities in research, product development, and alignment with global clean energy trends.

Furthermore, BSR has deployed a Digital Twin model, starting with simulations of the RFCC unit using Petro-SIM software, and plans to expand to other units such as CCR and NHT. This foundation supports real-time data monitoring, decision-making, and operational efficiency enhancement.

Agile response, proactive breakthroughs

Rather than reacting passively to oil market volatility, BSR proactively developed multiple scenarios based on in-depth analyses of global supply-demand and geopolitical factors. These scenarios guided plans for production, crude imports, and product sales.

BSR diversified its crude sources, successfully processing over 20 crude grades from the U.S., West Africa, and South America. The Company also tested new chemicals and catalysts to improve efficiency and reduce emissions, and operated two sulfur recovery units to handle high-sulfur crude at lower costs.

In addition to challenges posed by market fluctuations, BSR has effectively leveraged opportunities to enhance profit margins through crack spread optimization

BSR’s oil price scenario planning not only supports timely business strategy adjustments but also helps manage supply chain risks effectively. The Company has also maximized the value of feedstock by blending 100% of mixed C4 into gasoline, increasing product value by USD 20 - 30 per barrel compared to LPG blending. In addition, BSR has successfully produced two new solvents - White Spirit and MHO (Mixed Hydrocarbon Oil) - broadening its deep-processed product portfolio. Preparations for producing granulated sulfur have also been completed, with the granulation unit set for test operation by late June 2025, marking another step in enhancing value from by-products.

The Company has finalized and issued base gasoline specifications for E5/E10 biofuel blends (both Mogas 92 and Mogas 95), ready for mass production. Monthly BOPP output has been increased to approximately 3,000 tons, while the supply of strategic defense fuels such as Jet A1-K, DO-L62, and A83 gasoline continues to be ramped up, reinforcing BSR’s role in ensuring national energy security.

BSR systematically reviewed costs and prioritized essential, high-return investments. While many firms hesitated in the face of oil price swings, BSR seized opportunities. The recovering crack spread after May allowed the Company to restructure operations for both domestic and export advantages.

In the long term, BSR is steadily building a modern management system powered by digital transformation. The Company is focused on developing real-time, data-driven decision-making mechanisms while strengthening internal capabilities through advanced training and the development of a skilled technical-commercial workforce. BSR identifies governance quality as a critical factor in reinforcing internal strength and maintaining its leadership role in Vietnam’s energy sector.

President & CEO Nguyen Viet Thang affirmed: "The spirit of unity across generations of leadership has shaped the identity of BSR. Building on that foundation, we have established a flexible governance system capable of responding effectively to market dynamics. Innovation, scientific research, and digital transformation have been strongly promoted, with numerous practical initiatives implemented. From the very beginning of the year, investment has been a top priority, supported by breakthrough measures. Our leaders lead by example, fostering a culture of unity, dynamism, and dedication that drives innovation in investment, product diversification, and operational efficiency."

With a proactive, innovative, and united spirit, BSR employees continue to rise above challenges, maintain operational stability, and accelerate sustainable development - moving steadily toward the goal of becoming a leading petrochemical enterprise in the region, with strong international competitiveness and a central role in Vietnam’s energy economy.

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