PVD Plans for Lower 2024 Profit as Weather Forecast Favors Other Locations

According to the annual general meeting documents of the General Drilling and Oil Drilling Service Corporation (PV Drilling – code PVD), in 2024, the global economy is forecasted to face many difficulties and challenges that will directly affect the energy industry in general and the Vietnamese economy in particular.

Currently, oil prices are high and stable, the drilling market is booming with increasing demand for drilling rigs and rig rental rates, which will be a new driving force for PV Drilling’s growth in 2024 and the years to come.

In 2024, PV Drilling plans to achieve total revenue of VND 6,200 billion, a slight increase compared to 2023, but the after-tax profit plan is VND 380 billion, a decrease of 30% compared to 2023.

The 2024 SXKD plan is built on several key assumptions such as: 4 self-elevating drilling rigs operating with an average unit price increase of about 10% – 15% compared to 2023; 1 TAD semi-submersible drilling rig operating throughout the year in Brunei; PV DRILLING 11 onshore drilling rig with 4 months of work; 0.5 hired self-elevating drilling rigs.

With the forecast that oil prices will continue to stabilize at a high level, drilling, exploration, exploitation, and well abandonment and repair programs in the country and the region will increase, leading to the demand for drilling rigs, drilling rig rental prices and other drilling-related services will also be 
improved.

PV Drilling plans to invest in 2024 about VND 2,661 billion (including VND 2,405 billion at the parent company and VND 256 billion at member units), in which PV Drilling mainly implements projects transferred from 2023 such as HWU well repair equipment cluster, construction of workshops, … and invest in additional self-elevating drilling rigs, MPD equipment, CRTi to meet market demand.

PV Drilling said that in order to complete the business plan, in 2024, the Company will strengthen market research to promptly grasp investment opportunities, meet market demand, and continue to operate the drilling rigs and equipment safely and efficiently; enhance personnel training; improve corporate governance such as strict financial management, cost control; enhance digital transformation, …