PVD Flash Note – BUY

PVD reported Q3/2025 business results with NPAT reaching VND277 billion (+54% YoY and +10.8% QoQ), in line with our expectations. For 9M2025, NPAT rose by 46% YoY to VND 673 billion, completing 127% of the annual plan and 76% of ACBS’s forecast. We recommend BUY with a target price of VND 26,000/share by end-2026.

PVD announced Q3/2025 financial statements with revenue of VND2,570 billion (+5.4% YoY) and NPAT of VND277 billion (+54% YoY). Gross profit margin improved to 23.7% from 18.4% in the same period last year. The increase was driven by:
• Revenue from well technical services increased by 67% YoY thanks to higher workload, extending its growth momentum from early 2025. Gross margin for this segment also improved to 24.7% from 21.2% a year earlier.
• Gross margin for drilling services rose to 24.1% from 18.9% YoY, supported by high rig utilization rates and a slight 1% YoY increase in rig day-rate.
• PVD began recording revenue from the PVD VII rig as of September 1, 2025.
These positive factors offset the negative impacts from administrative expenses, which increased by 21.5% to VND 198 billion, mainly due to a 19.9% YoY rise in labor costs. The SG&A-to-revenue ratio rose to 7.7% from 6.7% in the same period last year. In addition, drilling services revenue declined by 7.2% YoY as the number of leased rigs fell (Q3/2025: 1 rig vs. Q3/2024: 1.6 rigs).
For 9M2025, revenue reached VND6,551 billion (+1% YoY) and NPAT reached VND673 billion (+46% YoY). In addition to the positive contribution from well technical services — supported by increased domestic oil and gas exploration activities — profit growth also benefited significantly from VND185 billion in other income (vs. VND 15.7 billion in the same period last year). This primarily came from recognizing the remaining proceeds from divestment of the land rig PVD11 in Q1/2025.
Outlook
We maintain our 2025 forecast with revenue of VND9,781 billion (+5.3% YoY) and NPAT of VND 884 billion (+27.4% YoY). For 2026, given expectations that Brent oil prices will remain low, rig day rates still face downside risks. Revenue for 2026 is projected to reach VND10,948 billion (+12% YoY) and NPAT VND1,002 billion (+13.3% YoY), supported by additional contributions from the new PVD IX rig. Using the Discounted Cash Flow (DCF) method, we value PVD at a target price of VND 26,000/share by end-2026.