OIL & GAS INDUSTRY: UPSTREAM DRIVES GROWTH
In 2026, oil price movements are expected to remain heavily influenced by geopolitical factors, particularly the risk of supply and transportation disruptions in the Middle East. Although global supply is still trending upward, driven by OPEC+ and non-OPEC producers, the geopolitical risk premium continues to play a key role in supporting higher price levels and increasing short-term volatility. Given the structure of the value chain, the impact of oil prices is not evenly distributed across segments.As a result, we maintain a differentiated outlook: Upstream (Positive), Midstream (Neutral), and Downstream (Neutral).
Upstream – E&P wave triggers a new growth cycle.
The expansion of E&P activities continues to provide strong workloads, supporting stable growth prospects for PVS in its EPC and technical services segments, as well as PVD in its jack-up rig and drilling equipment rental segments. The upstream investment cycle is entering a favorable phase, reinforcing medium- to long-term earnings outlooks for leading companies in the sector.
PVS (BUY, Target: 48,700) – M&C margin strongly improved, reinforcing growth momentum.
PVD (ACCUMULATE, Target: 36,400) – Contribution from new rigs drives profit growth.
Midstream – Short-term support from transportation, LNG as a long-term driver
Petroleum transportation continues to play a foundational role and is expected to benefit in the short term from geopolitical disruptions, which increase tonne-mile demand. However, medium-term prospects remain subject to the freight rate cycle and vessel oversupply. Meanwhile, the gas segment—particularly LNG—remains a key medium-term growth driver, supported by rising gas-to-power demand and declining domestic gas supply.
PVT (BUY, Target: 28,500) – Expanding fleet, benefiting from market volatility.
Downstream – Supported by demand recovery, awaiting policy reforms
Improving gasoline and diesel consumption, in line with the recovery in production and consumer activity, supports output growth for petroleum distributors. At the same time, expected policy adjustments are likely to ease margin constraints. With the largest distribution network in the market, PLX is well-positioned to benefit from the domestic consumption recovery cycle.
Risk
Key investment risks include: (1) oil and gas price volatility, (2) delays in key projects disrupting oilfield service demand, and (3) geopolitical developments that may affect oil flows and transportation demand.
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.