DGAP-News: De Raj Group AG / Key word(s): Incoming Orders/Agreement

16.09.2019 / 07:55
The issuer is solely responsible for the content of this announcement.

De Raj Group signs MoU for a huge refinery project in Vietnam

Cologne, 16 September 2019: De Raj Group AG (ISIN: DE000A2GSWR1, Vienna Stock Exchange) announces the signing of a Memorandum of Understanding (MoU) with Binh Son Refining & Petrochemical Company JSC (BSR) to finance and execute the expansion of its Dung Quất Refinery in Quang Ngai Province, Vietnam. This is a highly profitable business with an annual turnover of about USD 4.6 billion and a current market capitalization of USD 1.16 billion with a recorded EBITDA of about USD 290 million in 2018.

The value of the expansion is slated at USD 1.8 billion to USD 2.0 billion. De Raj is mandated to bring in the financing for the project in exchange for equity and trading rights.

BSR's main business includes production and trading of Petrochemical products including Liquefied Petroleum Gas (LPG), Propylene, Gasoline, Jet A1, Diesel, Fuel Oil and Polypropylene. The Refinery is 965 hectares and it currently has 1,543 engineers and technicians employed on site.

The competitiveness of the refinery is strongly supported by Vietnam's high Gross Domestic Product growth forecasted at 6.8% over the next 5 years with a population of roughly 96 million. The infrastructure industry in the country in booming along with double digit growth in motorbikes and automobiles leading to higher consumption of gasolines. There is also strong Government support in Vietnam for this growing industry and, being within close proximity of its biggest consumers (China, India, etc.), there is always potential growth through exportation.



De Raj Group's scope of work involves upgrading and expansion of the Dung Quất refinery. This includes upgrading two offshore terminals which allow ships of 50,000 Deadweight tonnage (DWT) loading capacity and other terminals that allow ships of 30,000 DWT loading capacity which enhances the stability of product delivery. This also minimizes the cost of importing products.

On top of this, a pre-flasher factory to increasing Crude Distillation Unit (CDU) capacity to 8.5m tonnes per year (130% of existing CDU capacity) is to be added, along with a vacuum distillation plant to further boost capacity and product quality to meet EURO V standards through upgraded process units. Finally, the group will be adding more crude oil storage tanks, immediate tanks and other product storages to allow for the increase in capacity.

Vaidyanathan Nateshan (CEO, De Raj Group AG):
"We are happy to announce this partnership as this is in line with our overall strategy to establish a significant presence in the emerging markets and this will also give us an opportunity to create and grow a Downstream portfolio."

About DE RAJ
De Raj Group provides oil and gas services and renewable energy solutions to companies in Asia and Europe. The company provides various solutions for the monetization of oil and gas fields to national oil companies, oil field owners, and other technology companies. For more information please visit the corporate website: https://www.thederajgroup.com

De Raj Group (ISIN: DE000A2GSWR1) had initial listing at the EU-regulated Vienna Stock Exchange (IPO held in February 2018). De Raj Group shares are traded on the Open Market in Frankfurt / Main and XETRA since 23 March 2018.
For further information please contact
De Raj Group AG, Investor Relations, mailto: ir@thederajgroup.com

 

16.09.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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