X-Stock | PVD VND 39,450, +16%: Q4 2025 earnings update

EARNINGS UPDATE

Q4 2025 results: PVD recorded net revenue = VND 4,313 billion (+54% YoY, +68% QoQ), NPAT-MI = VND 361 billion (+64% YoY, +30% QoQ). Revenue increased strongly by +54% YoY.

Gross margin reached 15.4% (+2.0 percentage points YoY, -8.3 percentage points QoQ). This was driven by a strong improvement in the drilling services segment’s gross margin (+5.1 percentage points YoY to 19%), supported by higher rig utilization and day rates. This offset the decline in the well technical services segment’s gross margin (-5.9 percentage points YoY).

SG&A expenses = VND 318 billion (+67% YoY, +53% QoQ). The SG&A-to-revenue ratio stood at 7.4% (+0.6 percentage points YoY, -0.7 percentage points QoQ).

Other income = VND 129 billion (+109% YoY), mainly from a contractor tax refund in Malaysia, which played an important role in supporting net profit in Q4 2025.

For full-year 2025, PVD recorded net revenue of VND 10,817 billion (+16% YoY), NPAT-MI = VND 1,031 billion (+48% YoY).

BSC’S ASSESSMENT

PVD’s Q4 2025 results exceeded BSC’s forecast by 24%, supported by non-recurring income, although core earnings quality showed mixed signals:

(i) Positive factors: Revenue exceeded expectations; SG&A expenses were lower than forecast; and the contractor tax refund helped offset the shortfall from weaker gross margin.

(ii) Gross margin came in below forecast, mainly due to pressure from the well technical services segment and a higher contribution from outsourced rigs.

Key points to watch: PVD’s 2026 outlook and key updates from the Q1 2026 investor meeting are discussed in detail on (page 2) of the report.