We attended BSR’s AGM on April 13, which discussed crack spreads, its major maintenance and business plan for 2023, listing on HOSE, and the progress of its upgrade & expansion plan.

Shareholders approved 2023 guidance for revenue of VND95.6tn (USD4bn; -43% YoY) and NPAT-MI of VND1.6tn (USD69mn; -89% YoY), which we believe is conservative. Over the past five years, BSR’s actual net profit has been on average 3.5x higher than its original guidance.

BSR expects to obtain approval to delay its 2023 major maintenance (fifth turnaround) to early 2024, which will help to increase its production volume by 25% and NPAT by another VND1tn compared to its guidance. This delay is to support the domestic petroleum supply and as management expects higher crack spreads in 2023 compared to 2024.