PVD – Turn around in 2023
- PVD recorded loss in 3Q2022 mainly due to a sharp increase in financial expenses. The bottom line will have no significant change in 4Q2022 and PVD will book a loss of VND168 bn in 2022.
- The gap between demand and supply has been narrowed down in South East Asia (SEA), pushing the utilization rate up and the day rate as well.
- PVD has signed the contract full year for its fleets. Following that, the rig day rate is estimated at 80,000 USD/day (up 27% YoY) in 2023 and the utilization rate is around 92%, compared to the 86% in 2022. We forecast that PVD can reach VND5,623 bn (USD234.3mn) in revenue, up 5.7% and VND320bn (USD13.3mn) in NPATMI (compared to the loss of VND168bn in 2022).
- We believe that there will be a re-rate in P/B of PVD in 2023 when the bottom-line hikes strongly in 2023 and may be 2024. We value PVD share at the target price of VND21,500, equivalent to P/B 2023 of 0.8x.
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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