PVT [O-PF +18.9%] - New refinery sparks growth for the giant energy transporter - Initiation
  • 2017-03-08T18:25:24
  • Company Research
We initiate PVT at OUTPERFORM with a +18.9% TSR inclusive of a dividend yield of 3.8%. We forecast earnings to decline temporarily by 16.3% YoY in 2017 due to a two-month maintenance at Dung Quat refinery and slight margin compression on lower tanker rates. We expect PVT to achieve NPAT CARG of 16.3% during 2017-2021 driven by the Nghi Son refinery operating from 2018 and the completion of the Dung Quat refinery expansion in 2020.