Viet Dragon Securities - PVP – higher crude oil tanker rate is the main growth driver

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Viet Dragon Securities

Vu Tran

PVP – higher crude oil tanker rate is the main growth driver

PVTrans Pacific (PVP) mainly supplies crude oil transportation service and FSO Dai Hung Queen for serving crude oil exploration at Dai Hung Oilfield. In addition, PVP also commercially operates two vessels: PVT Hera and PVT Mercury for its parent company – PVTrans (PVT).
Due to the Russia – Ukraine War, crude oil tanker freight rates have experienced a strong increase since 2H2022. Following that, the Apollo’s T/C rate has improved from 10,000 USD/day to the current 30,000 USD/day. In May, Apollo will be rewarded with a new T/C contract with an average rate of 37,000 USD/day to 40,000 USD/day.
Not only benefit from a higher freight rate for crude oil transportation, PVP also maintains a stable cash flow from the bareboat contract of FSO Dai Hung Queen. The new contract for FSO Dai Hung Queen was renewed at the end of 2022 with the same terms as before.
2023 earnings can reach VND210 bn, equivalent to the 2022 level despite the abnormal profit from liquidating Athena. EPS 2023 will be VND2,120 and PVP share is being traded at a 2023 P/E of 5.8x. In the long run, there are two attractive points (1) fleet expansion (2) cash dividend of VND1,000 per share ~ dividend yield of 8.2%. In our view, the investor can accumulate at this current price.

05/05/2023 6 EN

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Viet Dragon Securities

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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Analysts

Vu Tran

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PVP – higher crude oil tanker rate is the main growth driver

AWAITING THE BREAKOUT

Vietnam chilled-fresh meat market – Significant long-term potential but difficult to realize in

The decline has not come to a halt

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