PVD Update – OUTPERFORM

Petro Vietnam Drilling (HOSE: PVD)

In 2025, PVD positive business results were driven by: (1) contribution from the new rig PVD VIII, (2) divestment of the PVD11 land rig, (3) profit margin improvement, and (4) increasing profit/dividends distributed from joint ventures/subsidiaries. In 2026, we expect PVD to record a 22% yoy growth in revenue, and a 21% yoy growth in NPAT, mainly due to the new rig PVD VIII & PVD IV operating throughout the year with improved day-rate. Additionally, the Well Technical Services segment is also expected to contribute to growth in 2026. The target price for 2026 is VND 28,500/share. Rating OUTPERFORM.

In Q3.2025, the company achieved VND 2,570 billion in revenue (+5.4% yoy) and VND 277 billion in NPAT (+54.7% yoy). The growth was mainly due to improved Gross Profit Margin (GPM). For 9M.2025, PVD achieved VND 6,551 billion in revenue (+11% yoy) and VND 673 billion in NPAT (+46% yoy). Overall, in 9M.2025, PVD completed 127% of the NPAT target and 76% of our forecast. Specifically:

• The Drilling Services segment revenue accounted for 58% of total revenue, and the Well Technical Services segment contributed 37% of total revenue.
• The growth in revenue and profit was mainly due to the contribution from the PVD VIII. Besides, the workload in the Well Technical Services segment increased. The Gross Profit Margin for the Drilling Services & Well Technical Services segments saw a growth of 3%-5% yoy.
• NPAT growth was significantly contributed by VND 185 billion in other income, mainly from the divestment of PVD11 land rig.

2026 outlook

We maintain our 2025 revenue forecast at VND 9,781 billion (+5.3% yoy) and NPAT at VND 884 billion (+27.4% yoy).

For 2026, revenue is expected to reach VND 11,954 billion (+22% yoy) and NPAT at VND 1,068 billion (+21% yoy) thanks to the additional contribution from the PVD VIII & PVD IX rigs. Specifically, the PVD VIII rig will operate in Vietnam and Malaysia, and the PVD IX rig will operate for a domestic partner after being relaunched.

Using the Discounted Cash Flow (DCF) method, we value PVD with a target price of VND 28,500/share by the end of 2026.