PVD – All rigs under firm contract until the end of 2025
- In 1Q24, PVD recorded revenue of VND 1,756 bn (+43% YoY), driven by the drilling services segment. For 2024, projected revenue is VND 7,305 bn (+26% YoY), with NPAT-MI reaching VND 1,098 bn (+88% YoY). EPS FY2024 is VND 1,974.
- The prolonged high oil prices have boosted exploration and drilling activities in Southeast Asia. Consequently, all of PVD's rigs have fixed contracts until the end of 2025, with rental price reaching USD 105,000/day (+11% YoY). We estimate that PVD's profit in 2025 could increase by 22% YoY to VND 1,343 bn, with EPS and BVPS come at VND 2,389 and VND 30,718, respectively.
- Drilling activities in the domestic market are expected to pick up in 2025-2027 period, driven by key oil and gas projects such as Block B, Su Tu Trang 2B, and Lac Da Vang. However, we believe that the current price already reflects the company's profit growth prospects for the next 12 months, so we maintain our target price at VND 34,000/share, which is 8% higher than the closing price on June 19, 2024, corresponding to a NEUTRAL recommendation for this stock.
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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