PVT Update – OUTPERFORM

PETROVIETNAM TRANSPORTATION CORP (PVT)

In Q2/2025, PVT recorded net revenue growth of 46% YoY, mainly driven by strong contribution from trading activities with low gross profit margin. However, Q2/2025 after-tax profit declined 6% YoY. For 6M/2025, PVT posted VND 638 bn in after-tax profit (-6% YoY), fulfilling 72% of the company’s target and 46% of ACBS’s forecast. We maintain our 2025–2026 earnings estimates, with a target price of VND 20,800/share, rating Outperform.

In Q2/2025, PVT recorded net revenue of VND 4,352 bn (+46% YoY), mainly driven by a sharp increase in revenue from the trading segment, which surged by VND 1,517 bn (+234% YoY). However, both the transportation segment—accounting for 55% of total revenue—and the trading segment—35%—saw a significant decline in profitability, with gross profit margins dropping to 21% and 0.3%, respectively. This marks a sharp contraction compared to Q2/2024. As a result, PVT’s overall gross profit margin fell to 14% in Q2/2025, significantly lower than the 24% recorded in Q2/2024.

The primary reason behind the margin contraction was rising costs in outsourced services, including anchoring, maintenance, and logistics, especially on international routes where PVT operates

After-tax profit in Q2/2025 reached VND 361 bn (-6% YoY), with net profit margin of 8%, down from 12.6% in Q2/2024.

For 6M/2025, PVT posted total revenue of VND 7,142 bn (+29% YoY) and after-tax profit of VND 638 bn (-6% YoY), fulfilling 57% of the full-year target and 46% of ACBS’s forecast.

Quick comment: The oil shipping market has shown signs of cooling down compared to 2024, leading to weaker international freight efficiency. Nevertheless, current geopolitical risks have yet to materially affect PVT’s profitability. The company remains cautious in its fleet expansion strategy, having added only two new vessels in the first half of the year. The ongoing fleet expansion plan for the 2022–2024 period continues to provide a foundation for higher revenue scale compared to the previous cycle, although growth momentum may slow down.