- BSR released its Q2 2023 results with NPAT of VND1.3tn (-87% YoY & -18% QoQ) due to crack spreads (the difference between output prices and input prices) plunging from a high base in Q2 2022. In H1 2023, BSR’s revenue was VND67.7tn (USD2.9bn; -22% YoY) and its reported NPAT-MI was VND2.9tn (USD122mn; -76% YoY), completing 54% and 42% of our respective full-year forecasts and slightly trailing our expectations. Therefore, we foresee slight downside risk to our forecasts for BSR, pending a fuller review. We expect better input costs and slightly higher volume in H2 2023. 

- In Q2 2023, the average Singapore diesel spread was USD13/bbl (-63% YoY & -43% QoQ), the average Singapore gasoline spread was USD12/bbl (-54% YoY & -10% QoQ), and Brent oil price was 5% lower QoQ. These factors outweighed BSR’s 10% QoQ higher sales volume.

- Revenue was VND33.6tn (USD1.4bn; -36% YoY) and reported NPAT-MI was VND1.3tn (USD56bn; -87% YoY) in Q2 2023. We attribute the decline in revenue mainly to Brent oil price decreasing by 30% YoY and BSR’s sales volume edging down by 2% YoY. The strong decline in gross profit was mainly driven by significant YoY declines in diese and gasoline spreads. Additionally, the company recorded 65% higher G&A expenses due to higher outsourcing costs, which impacted operating profit. However, a 52% increase in financial income as a result of higher interest rates and reversal of FX losses in financial expenses partially supports the bottom line.

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