PVD – Earnings Review – [HOLD] – 4Q25: NPAT is stronger than preliminary estimates

PVD posted 4Q25 revenue of VND4,313bn (+54% yoy, ~108% of KIS’s forecast). Gross profit grew strongly to VND665bn (+77% yoy, 134% of KIS’s forecast). The solid growth was mainly driven by vibrant upstream activities in Vietnam and Southeast Asia, which generated a strong workload pipeline and favorable pricing for the drilling segment and other services.

• Drilling segment: Revenue surged 54% yoy to VND2,280bn (~94% of KIS’s forecast), driven by (1) a higher number of PVD-owned rigs in operation thanks to the addition of PVD 8 (+0.67 rigs yoy) while day rates remained stable, and (2) a sharp increase in workload from third-party leased rigs (+2.67 rigs yoy). According to PVD, the expansion in third-party leased rigs contributed mainly to revenue growth rather than profitability. As a result, gross profit rose 77% yoy (~126% of KIS’s forecast), while gross margin reached 18.6%, up 5.1%p from a low base but down 5.5%p qoq, mainly due to the dilution effect from third-party leased rigs.
• Well-related services: Revenue increased 85% yoy to VND1,723bn (~118% of KIS’s forecast). Gross profit reached VND245bn (+31% yoy, ~153% of KIS’s forecast), translating into a relatively low gross margin of 14.2% (-5.9ppt yoy, -10.5ppt qoq). We believe this reflects a conservative profit recognition approach, as PVD booked higher costs in 2025, rather than a deterioration in business fundamentals, given the strong upstream demand backdrop.

SG&A expenses rose sharply by 67% yoy to VND318bn. Notably, PVD recorded VND129bn in one-off income, related to a one-time tax refund for rigs operating in Malaysia during 2020–23.

NPAT came in at VND375bn (+58% yoy), exceeding PVD’s earlier preliminary estimate of VND160bn by 134%.

For full-year 2025, revenue reached VND10.8tn (+7% yoy), while NPAT amounted to VND1.04tn (+50% yoy).