PVT – 2Q2023 results to benefit from new vessels and higher freight rates.
- In 1Q2023, PVT recorded revenue of VND 2,043 bn (+1.1% YoY), while NPATMI reached VND 182 bn, (+19.2% YoY). Gross margin improved thanks to the transportation segment, which was driven by the petroleum/chemical tanker.
- With the fleet expansion and favorable freight rate trends, 2Q2023 results is anticipated to maintain its growth momentum. In details, the crude oil tanker and LPG tanker are expected to be the driving forces in 2Q2023, offsetting a slight decline in the petroleum/chemical tanker. Additionally, PVT has recorded abnormal profits from the liquidation of the Apollo Pacific and PVT Dragon vessels.
- Although 1H2023 number is positive, the 2H2023 may face challenges due to a high base last year, mainly attributed to the liquidation of Athena vessel. For the full year 2023, we forecast PVT's revenue to be up 2.1% and reach VND 9,233 bn. Meanwhile, NPATMI is expected to remain at VND861bn, equivalent to P/E 2023 of 9,3x.
- We keep a positive view for PVT as core business still records 10% growth in 2023. Assuming freight rates remain at the current levels in 2024 and the fleet is still expanding, we think that 2024 profit will still grow. Therefore, maintaining the BUY recommendation for PVT stock at 26,000 VND/share.
Petrovietnam Transportation Corporation (PV Trans) is a Vietnam-based company engaged in oil and gas marine transportation. It provides transportation of crude oil, petroleum and petrochemicals products. The Company is also involved in multimodal, inland water and road freight transportation, ship leasing and the offering of ship agency and brokerage services. In addition, it provides ship building, repair and maintenance services, as well as cargo handling services, vessel supply services and crew training and supply services. As of December 31, 2012, the Company was a subsidiary of Vietnam National Oil and Gas Group (Petrovietnam), and it had 10 subsidiaries, one joint venture and one affiliate. During the year ended December 31, 2012, 65.6% of the Company's revenue came from the provision of transportation services.
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