We initiate on PetroVietnam Drilling Mud (PVC), the monopoly drill fluid supplier in Vietnam, with an UNDER PERFORM rating and DCF-based TP of VND 16,600. PVC’s earnings – up to 95% derived from its drilling fluids – are expected to drop by 50% in 2015 and by 40% in 2016 as E&P budget cuts have reduced the number of wells to be drilled in Vietnam at similar rates. Consensus calls for little recovery in oil prices over the next two years...