Managing Volatility, Optimizing Capacity

The year 2025 witnessed intense volatility in the global energy market, closely tied to geopolitical developments and shifts in global demand. Brent crude oil prices fell by nearly 20%, from USD 79 per barrel to around USD 64 per barrel by year-end, with certain periods seeing price fluctuations of more than 16% within a single week. In addition, product pricing structures were adversely affected by fierce competition from regional refining and petrochemical complexes. The sharp increase in the USD/VND exchange rate also placed significant pressure on BSR’s crude oil imports.

Moreover, the pressure from the global energy transition and policies expanding the use of E10 fuel required BSR to flexibly adjust its production and business strategies, turning emerging challenges into opportunities as energy demand continued to grow, driven by public investment, industrial recovery, and rising transportation needs.

It can be said that in 2025, BSR faced “dual pressure”: on one hand, ensuring the completion and striving to exceed assigned growth targets while maintaining its domestic market and strengthening its business position both domestically and internationally; on the other hand, proactively adapting to unpredictable financial market fluctuations and the wave of new energy reshaping the global competitive landscape. However, with the spirit of “proactiveness – innovation – daring to think and act,” BSR focused on volatility management combined with innovation, digital transformation, and business restructuring, thereby overcoming challenges and reaching its 2025 targets ahead of schedule.

BSR operated the Dung Quat Refinery safely and stably at an average equivalent capacity of 120%, contributing to increased revenue and profitability. The Company also effectively seized market windows when crude oil prices declined while product prices did not decrease correspondingly - or even moved in the opposite direction - thereby optimizing profits. In particular, BSR proactively managed production and product consumption in close alignment with production and business scenarios that were continuously developed and updated in line with oil price movements and crack spreads (the difference between crude oil input prices and the combined value of output products), enabling timely capacity adjustments and accelerated sales during favorable market conditions.

A clear example is that during the last six months of 2025, BSR maintained an average equivalent operating capacity of 122% and accelerated product exports. As a result, profits increased by 113% compared to the first half of the year, despite a 7% decline in crude oil prices and harsh weather conditions.

Along with flexible and proactive production management, BSR diversified its product portfolio and successfully developed several new products, including high-value plastic resins such as F3030, T3045, P3034, TF4035; sustainable aviation fuel (SAF); granulated sulfur; and E10 RON 95 gasoline. These solutions contributed approximately VND 1,920 billion to total revenue, up 34% compared to 2024. At the same time, BSR expanded its international trading activities with products such as DO, FO, and RFCC Naphtha, generating about VND 2,050 billion in revenue, an increase of 37% year-on-year.

With regard to financial solutions, BSR optimized cash flows and expanded its list of deposit banks beyond the four state-owned commercial banks (the “Big Four”) to enhance financial income and profits. The Company also intensified efforts to optimize energy consumption, reduce losses, and minimize operating costs, resulting in cost savings of VND 828 billion in 2025 - 35% above the plan.

Thanks to these synchronized solutions, BSR achieved very impressive production and business results in 2025: production output reached 7.9 million tons (108% of the management plan); revenue reached VND 142,298 billion (102% of the management plan); profit before tax reached VND 4,541 billion (262% above the management plan); and state budget contributions reached VND 14,250 billion (110% of the management plan).

A “Picture” with Many Bright Highlights

BSR completed its 2025 production and business “picture” with many bright highlights. First, the Company broke operational limits by safely and stably operating the refinery at an average equivalent capacity of 120%. The year 2025 also marked the milestone of 100 million tons of cumulative products since the refinery commenced operations. Second, the refinery achieved 54 million safe man-hours. Third, BSR reduced the refinery’s internal energy consumption and losses to 7.2% - the lowest level in its operational history. Fourth, BSR successfully produced sustainable aviation fuel (SAF), sustainable marine fuel (SMFO), and E10 RON 95 gasoline, officially embarking on its clean energy transition and the development of environmentally friendly products. This success not only demonstrates BSR’s mastery of new technologies but also opens a strategic pathway for a high-value product ecosystem in the future, earning BSR a place in the Top 10 Vietnam Green ESG Enterprises 2025 in the Industry and Energy category. Fifth, BSR’s competitiveness in the region was further strengthened, with international trading revenue in 2025 reaching VND 2,045 billion, up 37% compared to 2024.

BSR also completed the increase of its charter capital from VND 31,005 billion to VND 50,707 billion, establishing an important foundation for financial safety and greater proactiveness amid unpredictable energy market fluctuations. In addition, BSR finalized its Digital Office system with 19 integrated modules, fully applying digital signatures and achieving 100% online processing of management and operational workflows on a digitalized platform.

In 2025, Forbes Vietnam valued the BSR brand at USD 201.7 million, placing it among the Top 25 leading listed brands of the year. The year also marked the third consecutive year that BSR was rated BB+ with a “Stable Outlook” by Fitch Ratings, affirming its sustainable financial capacity and strong growth potential. Furthermore, in 2025, BSR continued to implement many practical social welfare programs, officially surpassing the milestone of VND 1,000 billion contributed to the community.

Synchronized Solutions to Weather the “Storm” of 2026

According to forecasts by market research firms Wood Mackenzie and Platts, Dated Brent crude oil prices in 2026 are expected to fall below USD 60 per barrel due to prolonged oversupply from OPEC+ countries. As a result, BSR’s consolidated revenue in 2026 is projected to fall short of the plan by more than VND 32 trillion. Given that the refinery is already operating at levels far above its design capacity, this represents a major challenge.

To proactively weather the “storm” of 2026, BSR President and CEO Nguyen Viet Thang stated that the Company will focus on two main groups of solutions. For traditional solutions, BSR will concentrate on managing volatility, ensuring stable, safe, and continuous refinery operations at high capacity; optimizing costs and product structures; restoring production at the Dung Quat Biofuel Plant to increase E100 supply for blending E5 and E10 gasoline; optimizing cash flows to increase financial income and profits; and actively seeking opportunities to provide external services and develop business and service activities through subsidiaries.

For breakthrough solutions, BSR aims to research and pilot increasing refinery capacity to 123% - 125% of design capacity, potentially contributing an additional VND 6,472 billion to VND 8,763 billion under different oil price scenarios. The Company will also promote innovation, develop new products, and target revenue of approximately VND 57 trillion. At the same time, BSR will further expand international sales and trading to generate an additional VND 8,197 billion. In addition, BSR will study options to increase production volumes outside the refinery (processing, trading, mergers and acquisitions) and develop external service offerings, targeting an additional VND 500 billion to VND 3,000 billion in 2026.

With a solid foundation built in 2025, a clear strategy, strong determination, and the active support of Vietnam National Industry – Energy Group, BSR enters 2026 with a proactive mindset, ready to overcome challenges and continue creating sustainable value for the Company, the energy sector, and the national economy.

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