Title BSC_ Company analysis report PVD ICB 0573
Report Type Phân tích công ty
Source BSC
Bussiness PVD
Detail Date : 24/04/2014
Total pages : 6
Language : English
File Type : .PDF
FileSize : 390 Kb
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Short Content The global oil&gas has opportunity to recover, especially in Asia. The increase in the oil&gas demand leads to the rise in the demand of oil&gas exploitation and production and related services. The price of oil&gas services goes up because the oil&gas exploitation and production is boosting, the day rate of rigs is higher than 15% in comparison to the year 2013. PVD is the largest drilling contractor in Vietnam, accounting for 70& market shares. At the moment, PVD is running 11 rigs with the operating efficiency of 98-99% including 5 owned rigs and 6 hired rigs while the total number of rigs operating in Vietnam is 21 rigs (including 4 nonprofit rigs of Vietsopetro). Moreover, PVD owns the newest rigs with the average age of 5 years (in the world, there are 22% under 5 years old rigs and 61% over 30 years old rigs. The 2014 business performance is expected to be satisfactory. Base on the current day rate of the area and the continuously operating of 3 owned rigs and over 4 hired rigs in whole the year 2014, BSC expect that the 2014 revenue of PVD will reach 18.386 trillion dongs, the profit after tax will reach 2.356 trillion dongs (EPS will reach 8,129 dongs/share). 2014 Prospects: • The drilling contract of PVD is signed until the end of the year 2014. PVD provide drilling related services for owned rigs and the hired rigs as well. The day rate of rigs and the price of services are high. • There are positive signal from oversea market. PV Drilling has corporated with Singapore for building PV Drilling VI. Moreover, PVD provided the full contract of drilling services for Myanmar, set up the new office in Malaysia. Investment view: PVD is a good fundamental stock with the significant growth in recently as well as this is a liquidity blue-chip stock with high Beta on HSX. Furthermore, there is the recovery in oil&gas sector (South East Asia in particular) and highly prospect of the company in 2014. We recommended that buying PVD in medium-term and long-term with targeted price at VND 90,200 /share