Vietcap Mobile App 
Vietcap Trading 
Download Vietcap Pro 
Open Account 
Vietcap IQ 
User Guides 
- PVD released its Q3 2024 results with revenue of USD98mn (VND2.4tn; +67% YoY) and reported NPAT-MI of USD7.3mn (VND208bn; +14% YoY). Strong growth was driven by the drilling segment due to (1) a 14% YoY higher average jack-up day rate of owned rigs, and (2) new contributions from two leased rigs (Hakuryu-11 and BORR-THOR) (vs none in Q3 2023). (3) Associated companies’ profits also surged to USD1.1mn (7.3x YoY), driven by a rise in well-related service contracts.
- For its 9M 2024, revenue was USD261mn (VND6.5tn; +52% YoY) and reported NPAT-MI was USD19.3mn (VND504bn; +19% YoY). This was mainly due to (1) the 24% YoY higher average day rate and full utilization rate of owned rigs (+5.3 ppts YoY), and (2) the contribution from two newly-leased rigs vs 0 in 9M 2023. These factors outweighed the (3) 56% YoY decrease in profit from associated companies (which made losses in H1 2024), and (4) a +19% YoY forex loss.
- 9M 2024 revenue and reported NPAT-MI complete 76% and 54% of our full-year forecast. This was mainly due to (1) a lower-than-expected average jack-up day rate and (2) higher-than-expected operating cash cost, which outweighed (3) a lower-than-expected depreciation expense. The 9M 2024 average jack-up day rate was USD92,257/day, 94% of our full-year projection (+24% YoY). However, PVD anticipates that day rates will average USD97,000/day for 2024 (only 1.5% lower than our current projection of USD98,500/day), implying significant improvements in Q4.
- Adjusting for FX losses, recurring NPAT-MI was USD23.1mn (+47% YoY), completing 60% of our full-year forecast. As a result, we foresee downside risk to our full-year recurring NPAT-MI forecast, pending a further review, due to: 1) a higher-than-expected cash operating cost, 2) higher-than-expected SG&A expenses (with labor & outsourcing costs surging YoY), and 3) a higher financial expense.
- PVD’s acquisition of a second-hand jack-up rig for USD90mn is in progress. Previously, PVD postponed this investment due to anticipated short-term market pressure following the release of jack-up rigs by Saudi Aramco, which may lead to lower jack-up prices. PVD anticipates promising market conditions, with marketed surplus rigs peaking in September and projected to decline through 2026. This suggests drilling demand is set to rise, and Aramco’s released rigs might come back into operation, supporting a potential day rate recovery. As a result, PVD still plans to invest in one-two jack-up rigs by 2025-2026, while our forecast assumes for one newly-acquired rig to be operational by mid-2025.
- In Q3 2024, the average Southeast Asian jack-up day rate was weak at USD109,500/day (-8% YoY; -21% QoQ), despite the market remaining tight with a utilization rate of 96.6% (+3.3 ppts YoY; +0.5 ppts QoQ). The rate drop resulted from Saudi Aramco's temporary suspension of its jack-up rig contracts, pushing additional rigs into the Southeast Asian market and leading to charters negotiating lower day rates. Particularly, one low-cost rig gained an advantage, the COSLSeeker jack-up rig, which entered into a five-year contract with PTTEP Thailand, replacing incumbent TAR Sapura T17 with a substantially lower day rate. These factors led to the regional average day rate declining, according to PVD.
- Looking ahead, PVD anticipates the SEA jack-up market to remain favorable. Southeast Asia’s jack-up rig market shows strong demand, with numerous drilling programs across Indonesia, Malaysia, Thailand, and Vietnam. Key players like BP, Hibiscus, PTTEP, and various JOCs are planning or continuing multi-well projects, with many extending into 2026-2029. Additionally, drilling rigs supply is limited given only 12 new built jack-up rigs (2.8% of total globally-marketed rigs) during 2024-2026, with only two in SEA. This robust market outlook is expected to support rising rig utilization in coming years and provide ample drilling opportunities for PVD’s fleet through 2026, supporting its upcoming investment plans.
PVD’s 9M 2024 results
USD mn | Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | % of Vietcap’s 2024F |
Brent oil price (USD/bbl) | 86 | 79 | -8% | 82 | 82 | 0% | 99% |
Jack-up day rate (USD/day) (*) | 78,000 | 88,920 | 14% | 74,300 | 92,257 | 24% | 94% |
Jack-up utilization rate % (*) | 89% | 100% | 11.1 ppts | 94% | 100% | 5.3 ppts | 103% |
Revenue | 58.8 | 98.4 | 67% | 171.7 | 261.4 | 52% | 76% |
COGS | -46.2 | -80.2 | 74% | -133.6 | -205.8 | 54% | 77% |
Gross profit | 12.6 | 18.2 | 44% | 38.1 | 55.6 | 46% | 73% |
Sales & marketing exp | -0.2 | -0.4 | 78% | -0.5 | -0.5 | 14% | 87% |
General admin exp | -4.8 | -6.6 | 36% | -15.5 | -17.4 | 12% | 78% |
Operating profit (EBIT) | 7.6 | 11.2 | 49% | 22.1 | 37.7 | 70% | 71% |
Financial income | 1.8 | 1.9 | 4% | 4.1 | 4.6 | 11% | 84% |
Financial expenses | -5.7 | -3.9 | -32% | -13.3 | -14.3 | 8% | 92% |
In which: interest expense | -2.6 | -2.1 | -21% | -7.9 | -7.7 | -4% | 73% |
Shared profit from associates | 0.2 | 1.1 | 632% | 1.1 | 0.5 | -56% | 36% |
Net other income/loss | 2.6 | -0.3 | -112% | 4.3 | -1.3 | N.M. | N.M. |
Profit before tax (PBT) | 6.5 | 10.1 | 54% | 18.4 | 27.2 | 48% | 61% |
Income tax expenses | -0.8 | -2.8 | 237% | -3.8 | -8.6 | 128% | 77% |
NPAT | 5.7 | 7.2 | 27% | 14.6 | 18.6 | 27% | 56% |
Minority interest (MI) | -0.7 | 0.1 | -111% | -1.6 | 0.7 | -144% | 35% |
Reported NPAT-MI | 6.4 | 7.3 | 14% | 16.2 | 19.3 | 19% | 54% |
Recurring NPAT-MI (**) | 5.8 | 8.1 | 39% | 15.8 | 23.1 | 47% | 60% |
EBITDA | 16.6 | 19.9 | 20% | 49.4 | 63.8 | 29% | 70% |
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.
Powered by Froala Editor
