Binh Son Refining and Petrochemical Co. Ltd (BSR), the operator of Dung Quat Oil Refinery, plans to put a proportion of its shares in the facility for sale in an IPO to be announced later this year.

Situated in the central province of Quang Ngai, Dung Quat, the only functioning oil refinery in Vietnam, is valued at US$3.2 billion.

Following a recent meeting with Deputy Prime Minister Trinh Dinh Dung, BSR is currently inviting investors to purchase five to six percent of the facility during an upcoming initial public offering, set to go ahead in the last quarter of this year, according to company leaders.

Vietnam’s largest fuel wholesaler Petrolimex revealed in August that it planned to become a strategic shareholder of Dung Quat.

Vietnam's Deputy Prime Minister Trinh Dinh Dung (center) speaks at a meeting with BSR officials. Photo: Tuoi Tre

Developed by oil and gas giant PetroVietnam, Dung Quat is operating well, even exceeding its design production capacity by six to eight percent, said BSR general manager Tran Ngoc Nguyen.

In the first nine months of this year, the facility churned out 4.4 million metric tons of products, 4.3 million tons of which have been consumed, with revenue of VND55 trillion ($2.42 billion).

In doing so, the refinery has contributed more than VND6.5 trillion ($286.34 million) to the state budget, already meeting 91 percent of its full-year target.

Dung Quat boasts a return on equity ratio of 16.09 percent, and a return on sales of 9.94 percent.

BSR is also undertaking a project to expand the facility, expected to be completed by March 2022.