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- PVD released its Q1 2024 results with revenue of USD72mn (VND1.8tn; +37% YoY) and reported NPAT-MI of USD6.5mn (VND157bn; +173% YoY). The strong performance was driven by (1) full utilization of rigs (flat YoY), coupled with (2) 34% YoY higher average day rates amid the tight rig market in Southeast Asia.
- Q1 2024 drilling gross profit margin set a new record high at 32.4% (higher than the peak 2013 level at 25.7% and recent high of 26.7% in Q4 2023). This is mainly due to the high day rate in Q1 2024 together with 15% YoY lower depreciation expenses. Consolidated gross profit completed 25% of our full-year projection.
- However, Q1 2024 results trailed our expectations. Reported NPAT-MI is equivalent to 16% of our full-year forecast, which is lower than expected due to higher-than-expected forex loss, following the VND depreciation. Additionally, recurring NPAT-MI is equivalent to 19% of our full-year forecast and is also lower than expected. This is due to shared profit from associates, which incurred a loss of USD0.4mn in Q1 vs our full-year forecast gain of USD3.8mn (we are asking for further explanation as PVD believes shared profit will be better YoY in 2024). Therefore, we foresee slight downside risk to our recurring/reported earnings forecast, pending a fuller review.
PVD’s Q1 2024 results
USD mn | Q1 2023 | Q1 2024 | YoY | % of Vietcap’s 2024F |
Brent oil price (USD/bbl) | 82 | 82 | -1% | 99% |
Jack-up day rate (USD/day) (*) | 70,750 | 94,805 | 34% | 96% |
Jack-up utilization rate % (*) | 100% | 100% | 0.0 ppts | 103% |
Revenue | 52.4 | 72.0 | 37% | 23% |
COGS | -42.2 | -53.5 | 27% | 22% |
Gross profit | 10.2 | 18.5 | 82% | 25% |
Sales & marketing exp | -0.1 | -0.1 | 0% | 9% |
General admin exp | -4.8 | -4.8 | 0% | 21% |
Operating profit (EBIT) | 5.4 | 13.7 | 155% | 27% |
Financial income | 2.0 | 1.1 | -45% | 18% |
Financial expenses | -4.2 | -5.0 | 20% | 44% |
In which: interest expense | -3.0 | -2.9 | -3% | 33% |
Shared profit from associates | 0.2 | -0.4 | -345% | N.M. |
Net other income/loss | -0.7 | -0.5 | N.M. | N.M. |
Profit before tax (PBT) | 2.7 | 8.8 | 228% | 18% |
Income tax expenses | -0.5 | -2.7 | 498% | 28% |
NPAT | 2.2 | 6.1 | 173% | 15% |
Minority interest (MI) | -0.6 | 0.4 | -166% | 19% |
Reported NPAT-MI | 2.8 | 6.5 | 130% | 16% |
Recurring NPAT-MI (**) | 3.7 | 8.0 | 94% | 19% |
EBITDA | 15.0 | 21.8 | 46% | 24% |
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.
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