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PVD - OUTPERFORM - Strong finish as 4Q14 slightly top our forecast. Stock oversold, reiterate Outperform. - Update

Company Research

12 Feb 2015

FY14 bottom line surged 25% vs. 2013, exceeding our estimates by 2%. 4Q14 figures reveal expected squeeze in GPM for well services segment. No FY15 company guidance yet but we forecast 11% fall in FY15 NPAT as current fleet is 100% contracted through 2015 and a new jack-up will help offset our estimate of a 30% drop in well service earnings. We think stock is oversold. PVD is trading at FY15 PER of 10.4, 19% discount to regional peers of 10.4x, assuming Brent oil price of US$60/bbl.
Tags: PVD

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