BSR released its Q3 2022 financial results with revenue of VND40tn (USD1.6bn; +124% YoY) and NPAT-MI of VND479bn (USD20mn; +1% YoY), which were driven by strong volume and robust gasoline & diesel crack spreads offsetting a YoY surge in inventory provision. However, Q3 2022 NPAT-MI was down 95% compared to the high base in Q2 2022. 

In Q3 2022, the average diesel spread was USD36 per barrel (flat QoQ) and the average gasoline spread was USD11 per barrel (-60% QoQ). In addition, BSR booked an inventory provision of VND396bn in Q3 2022 compared to a provision reversal of VND1.7tn (USD65mn) in Q2 2022. BSR does not expect a material inventory provision in Q4 2022. 

In 9M 2022, BSR’s revenue rose 90% YoY and its NPAT-MI was up 3.5x YoY due to strong crack spreads and high volume. BSR’s 9M 2022 sales volume was 5.1 million tonnes (+12.0% YoY), completing 72% of our full-year forecast. 9M 2022 NPAT-MI completed 87% of our full-year forecast and was in line with our expectation.