PVD – 2Q earnings was boosted by drilling contract compensation
- PVD achieved revenue of VND 1,413 bn and NPATMI of VND 161 bn in 2Q2023. Both the drilling and well services segments showed better gross margins compared to the same period last year. Notably, PVD received VND 70 bn in compensation for terminating the drilling contract with Valeura.
- PVD has secured other contracts to replace the canceled drilling contract of Valeura. With these new drilling contracts, we believe that PVD's rig day rates for the entire year 2023 will remain stable or even positive, considering the currently high day rates in the region.
- In 3Q2023, PVD is likely to receive the remaining compensation from the terminated contract, further strengthening its earnings for 2023. We project the full-year revenue and NPATMI to reach VND 4,997 bn and VND 336 bn, respectively, for 2023.
- PVD's stock has been continuously rising recently to reflect its strong business performance in 2Q2023 and high earnings expectations for 2023 and 2024 based on the skyrocketed day rates in the region. Up to now, PVD has partially secured drilling contracts for 2024 at a day rate of around USD 90,000 per day. This ensures part of the company's profit for 2024. Therefore, we maintain the target price of 26,800 VND/share for PVD until further confirmation on the signing of 2024 contracts for its drilling fleets.
PetroVietnam Drilling & Well Service Corporation is a Vietnam-based provider of oil and gas drilling services. The Company's operation is organized under three segments, including Drilling Services segment, which leases oil rigs and performs drilling services on a contract basis; Trading segment, which distributes equipment and supplies for oil drilling businesses, and Other Services segment, which provides diversified related services, such as oil well surveying and mapping, mud logging, oil spill containment, human resources outsourcing and project management.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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