- 2025-02-03T00:00:00
- Company Research
- PVD reported Q4 2024 revenue of USD112mn (+52% YoY) and NPAT-MI of USD8.6mn (+5% YoY). The growth in NPAT-MI was driven by (1) a 50% YoY reduction in financial expenses and (2) net other income of USD2.0mn, which we attribute to a land rig 11 divestment gain (compared to a net other loss of USD0.4mn in Q4 2023). These factors outweighed (3) a 29% YoY decline in operating profit, which was impacted by a 49% YoY decrease in the drilling segment’s gross profit , which we attribute to the lack of contributions from land rig 11 and lower day rates for leased rigs (Hakuryu-11 and BORR-THOR), aligning with a 37% YoY drop in regional day rates. Meanwhile, gross profit of well-related services surged 1.5x YoY, reflecting a recovery aligned with Vietnam’s E&P growth cycle.
- For full-year 2024, PVD achieved revenue of USD373.6mn (+52% YoY) and reported NPAT-MI of USD27.9mn (+14% YoY). We estimate recurring NPAT-MI of USD30.0mn (+23% YoY), driven by (1) a 2.2x YoY increase in the drilling segment’s gross profit and (2) a 32% YoY rise in well-related services gross profit, which outweighed (3) 29% YoY decrease in profit from associated companies (due to these companies recording losses in H1 2024).
- PVD’s full-year revenue and reported NPAT-MI were equivalent to 107% and 95% of our respective full-year forecasts. However, recurring NPAT-MI completed only 89% of our forecast due to potential lower day rates of leased rigs and higher-than-expected cash operating costs, which resulted in lower-than-expected GPM in the drilling segment. We foresee slight downside risk to our earnings forecasts pending further review as lower profit from the drilling segment might outweigh lower-than-expected interest expenses and higher-than-expected shared profit.
Figure 1: PVD’s 2024 results
USD mn | Q4 2023 | Q4 2024 | YoY | 2023 | 2024 | YoY | % of Vietcap’s 2024F |
Brent oil price (USD/bbl) | 83 | 74 | -10% | 82 | 80 | 3% | 100% |
Revenue | 73.8 | 112.2 | 52% | 245.5 | 373.6 | 52% | 107% |
COGS | -57.0 | -97.8 | 72% | -190.6 | -303.6 | 59% | 111% |
Gross profit | 16.8 | 14.4 | -14% | 54.9 | 70.0 | 27% | 94% |
Sales & marketing exp | -0.5 | -0.9 | 59% | -1.0 | -1.4 | 38% | 136% |
General admin exp | -6.4 | -6.6 | 2% | -22.0 | -24.0 | 9% | 98% |
Operating profit (EBIT) | 9.9 | 7.0 | -29% | 32.0 | 44.6 | 40% | 91% |
Financial income | 1.5 | 1.5 | -2% | 5.7 | 6.1 | 8% | 103% |
Financial expenses | -3.3 | -1.7 | -50% | -16.6 | -15.9 | -4% | 94% |
In which: interest expense | -2.6 | -1.9 | -28% | -10.6 | -9.6 | -10% | 91% |
Shared profit from associates | 1.7 | 1.5 | -11% | 2.8 | 2.0 | -29% | 142% |
Net other income/loss | -0.4 | 2.0 | N.M. | 3.9 | 0.7 | N.M. | N.M. |
Profit before tax (PBT) | 9.3 | 10.3 | 11% | 27.7 | 37.5 | 35% | 99% |
Income tax expenses | -1.1 | -1.0 | -12% | -4.9 | -9.6 | 96% | 90% |
NPAT | 8.2 | 9.3 | 14% | 22.8 | 27.9 | 22% | 102% |
Minority interest (MI) | 0.0 | -0.7 | N.M. | -1.6 | 0.0 | N.M. | N.M. |
Reported NPAT-MI | 8.2 | 8.6 | 5% | 24.5 | 27.9 | 14% | 95% |
Recurring NPAT-MI (**) | 8.7 | 6.8 | -21% | 24.4 | 30.0 | 23% | 89% |
EBITDA | 18.7 | 16.6 | -11% | 68.1 | 80.4 | 18% | 93% |
Source: PVD, Vietcap. Note: (*) Vietcap’s estimates; (**) recurring NPAT-MI excludes the impact of provisions for PVEP’s bad debts, reversal of withholding tax (which occurs when jack-up rigs work in Malaysia), science fund reversal, forex losses, and one-off profit.
Figure 2: Summarizing regional jack-up rig day rate and utilization rate
Q4 2024 | QoQ | YoY | 2024 | YoY | |
Day rate (USD/day) | 80,329 | -27% | -37% | 118,364 | -1% |
Utilization rate (%) | 97.1 | +0.5 ppts | +3.4 ppts | 96.6 | +5.0 ppts |
Source: S&P Global, Bloomberg, Vietcap
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