• We attended PVS’s AGM on May 29. We also attended PVS’s Analyst meeting on May 19 (please see our Analyst Meeting Note for more information). 
• Overall, PVS’s strategy is to become a worldwide brand in both the oil & gas and renewable power sectors. By 2024, PVS had secured 10 offshore substations (OSS) contracts (9% share of the global OSS market), underscoring its growing prominence in the renewable energy sector. Over the past three years, PVS doubled its M&C capacity to USD1bn and targets USD2bn in the next three years. 
• PVS outlined a long-term plan to raise its share capital from VND4.7tn to VND9tn (1.9x) and potentially VND13tn (2.7x) by 2030. Though still preliminary and subject to approvals from PetroVietnam and the Ministry of Industry & Trade, the increase will likely be via (1) stock dividends, (2) additional share issuance to existing shareholders, and (3) equity mobilization from international organizations
• Shareholders approved conservative guidance for 2025 revenue of VND22.5tn (+45% vs 2024G; -5% vs 2024A; 62% of our 2025F forecast) and PBT of VND1.0tn (+17% vs 2024G; -36% vs 2024A; 77% of our 2025F forecast). We attribute this to management’s cautious outlook, as historically, PVS’s actual revenue and profit exceeded targets by an average of 55% and 85%, respectively, over 2022–2024.
• PVS expects an improvement in the upcoming quarters of 2025. This outlook is supported by the commencement of several key contracts in EPC, FSO/FPSO, and offshore wind that began in early 2025. These projects are expected to drive a stronger revenue stream starting in Q2. At the May analyst meeting, management highlighted strong Q1 2025 revenue of VND6tn (+62% YoY) despite seasonally low activity. This solid start sets the stage for growth in the remaining quarters. 
• Our view: While we see insignificant changes to our 2025 reported NPAT-MI forecast, we recognize a slight downside risk to projected EPS due to the higher-than-expected bonus and welfare fund allocation. We also see potential upside to our long-term revenue forecast, driven by two key growth drivers: (1) the oil & gas field closure and decommissioning business, which PVS estimates to have a domestic market size of USD3–5bn funded by investor prepayments to the Government, and (2) the potential capex of USD10bn vs our previous USD5bn projection of the offshore wind electricity export project to Singapore and Malaysia. 

Shareholders approved a 2024 bonus & welfare fund of VND338bn (above the initial guidance of VND140bn). For 2025, PVS proposes an allocation of VND180bn, equivalent to 26.5% of its parent NPAT guidance of VND680bn. 

Shareholders approved PVS to increase its share capital by 7% via a stock dividend at a 100:7 ratio for 2024 earnings (vs the VND700/share cash dividend proposed at the 2024 AGM; our projection assumes no cash dividend). After the increase, PVS’s share capital will be VND5,144bn. For 2025 earnings, PVS also proposes to pay a stock dividend at a 100:7 ratio (in line with our assumption for no cash dividend).

Shareholders approved the contract for PVS to provide the FSO for the Block B project. The project will be executed through PTSC South East Asia Pte. Ltd., a joint venture between PVS (51%) and Yinson (49%). PVS expects construction to be completed by 2027 and targets a project ROE of over 10%. We project an IRR of 13% and forecast for the FSO to contribute VND68bn to PVS’s NPAT-MI during 2025–2029F (4.5% of reported NPAT-MI).

By 2024, PVS had secured contracts to build a total of 10 offshore substations (OSS) for offshore wind farm projects. With these 10 secured OSS contracts, PVS estimates it holds 9% of the global market share for offshore substations. This confirms the company as a key player in the global offshore wind value chain. This includes four OSS won in previous years and six additional OSS awarded in 2024. According to PVS, the company has successfully delivered three substations and is currently constructing the remaining seven.

PVS is introducing new long-term growth opportunities. In addition to the strategic pillars of nuclear power and CCUS (as discussed during the May 2025 analyst meeting), PVS highlights oil & gas field closures and decommissioning as another key area of long-term workload . The company shared that oil & gas field investors have pre-funded approximately USD3–5bn to the Vietnamese government (a proxy for the current market size) which will be disbursed once decommissioning projects commence. As the leading provider of oil & gas technical services in Vietnam, PVS is well-positioned to capitalize on this upcoming wave of decommissioning work.

USD10bn backlog from Vietnam's offshore wind export project, supporting a multi-decade growth catalyst for PVS. 

• Initially planned to supply power to Singapore, the project has now expanded to include Malaysia, following high-level endorsement from the Prime Ministers of Vietnam, Singapore, and Malaysia at the 46th ASEAN Summit in May 2025. 
• PVS shared that the total project size for Vietnam’s offshore wind electricity export initiative is estimated at over USD10bn. The project comprises three major components: (1) a >2,000 MW offshore wind farm in Vietnam, (2) submarine transmission cables connecting Vietnam to Malaysia and Singapore, and (3) offshore substations in both Vietnam and Singapore. The expected COD is 2033, with feasibility studies underway and targeted for completion by 2026, followed by FID in 2027.
• PVS stated that if implemented successfully, it could deliver stable revenue and profit for the company over the next 30–50 years, marking a transformative and sustainable long-term growth driver.

Plan to continue doubling M&C capacity over the next three years: Over the past three years, PVS doubled its M&C capacity, enabling it to meet 100% of international standards (including US standards for oil & gas and EU standards for offshore wind farm projects). This transformation positions PVS as a globally competitive EPC contractor. Looking ahead, the company expects capacity to double again over the next three years, driven by ongoing investments in key infrastructure. In particular, the Vung Tau supply base (PVS’s core EPC hub) is undergoing upgrades that could double its construction capacity once completed. In parallel, ports at Dung Quat and Nghi Son, which already support general services and some EPC work, are also set for capacity expansion. When fully developed, these two ports could contribute an additional 20–25% to PVS’s total EPC supply chain.

PVS views the potential collaboration with HPG as a strategic opportunity to enhance Vietnam’s domestic supply chain and reduce reliance on imported steel for oil & gas and offshore wind projects. This followed a comprehensive cooperation agreement between PetroVietnam and HPG. Currently, all structural steel used in PVS’s EPC projects (such as jackets, foundations, and offshore substations) is imported. If HPG can meet the technical requirements for these high-spec materials, it would allow PVS to significantly lower input costs, mitigate FX and logistics risks, and improve competitiveness in international EPC bidding. This partnership not only benefits PVS through supply chain security but also offers long-term volume upside for HPG in the industrial-grade steel segment.

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