Updated News
2024 Plan Takes a Step Back
 The 2024 Annual General Meeting of Shareholders of PVD was held on the morning of April 24, 2024. Screenshot
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Mr. Nguyen Xuan Cuong – Member of the Board of Directors and General Director shared at the beginning of the Congress that oil prices are currently high, the drilling rig market is booming, and both demand and rental rates are increasing. Drilling, exploration, and exploitation programs, as well as well abandonment and repair in countries in the region, are also increasing. This is expected to be a growth driver for PVD in 2024 and beyond. However, the forecast is that the economy will face many difficulties and challenges, which will directly impact the energy sector, leading the Company to set more conservative targets.
The plan is based on the following assumptions: The average unit price of the four self-elevating drilling rigs will increase by 10-15% compared to the previous year; the TAD semi-submersible drilling rig will operate continuously in Brunei; the PV Drilling 11 onshore rig will have work for 4 months; and 0.5 self-elevating drilling rigs will be hired.
In 2024, PVD targets revenue of VND 6,200 billion, a slight increase compared to the previous year’s results, but net profit after tax is only VND 380 billion, a decrease of 30%. The budget contribution target has decreased by 13%, to VND 385 billion.
Source: VietstockFinance
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Regarding investment targets, PVD plans to allocate nearly VND 2.7 trillion in 2024, mainly for projects carried over from 2023 such as the HWU well servicing equipment, the construction of a workshop, and the investment in additional self-elevating drilling rigs, MPD equipment, and CRTi to meet market demand. The majority of the investment plan is earmarked for a three-legged, skid-mounted, multi-purpose self-elevating drilling rig (over VND 2.1 trillion, with over VND 1.5 trillion from borrowed capital).
The General Director of PVD said: “We hope to complete the restructuring plans set out by 2025. To date, the drilling rigs owned by PVD have signed contracts and have secured work throughout 2024 and into 2025. PVD is seizing new opportunities with investment/cooperation plans to acquire additional drilling rigs, invest in HWU and other equipment, expand market share, and realize its sustainable development strategy”.
 Mr. Nguyen Xuan Cuong – General Director of PVD
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No dividend
Regarding the profit distribution plan, PVD said that the remaining profit available for dividend distribution in 2023 is VND 263 billion. However, due to the difficult market situation, PVD must consider suspending or delaying investment projects, prioritizing only necessary machinery and equipment. With the forecast of increasing demand for drilling, exploration, exploitation, and other work in the near future, the Company will review the demand, balance the cash flow, and propose a plan not to pay dividends in 2023.
This amount will be retained as undistributed profit to support the capital for expanding production and business operations in 2024. As for the 2024 dividend plan, the Company said it will review and submit it at the 2025 Annual General Meeting of Shareholders.
In addition, PVD will submit to the General Meeting of Shareholders a proposal to dismiss Mr. Do Duc Chien from the Board of Directors; and at the same time, elect Mr. Nguyen The Son to replace Mr. Chien. Mr. Son has a Bachelor’s degree in Foreign Economics and is currently the Deputy General Director of PVD.
In addition, the General Meeting of Shareholders will also elect members of the Supervisory Board for the 2024-2026 term. In which, the Vietnam Oil and Gas Group (PVN) nominated Mr. Le Hong Phuong – Head of the Internal Audit Unit of PVD. The Supervisory Board of PVD also nominated two members of the Supervisory Board, Mr. Nguyen Van Tai and Mr. Nguyen Binh Hop, to continue their work on the Supervisory Board.
Discussion:
Revenue may increase to VND 8,000 billion
Estimated revenue for the first quarter is VND 1,800 billion and over VND 200 billion in net profit, what is the planned forecast?
Mr. Nguyen Xuan Cuong: The 2024 plan was established at the end of 2023. Updated to date, PVD is confident that it can exceed the set plan. Revenue may increase to VND 8,000 billion. In addition, putting the rig into operation with a partner can help increase revenue.
Profit may be achieved and exceed the profit in 2023. In 2023, there was a surge in compensation, so when making the plan for 2024, PVD was prudent.
If PVD does not invest in additional exploitation rigs, revenue may increase when cooperating with partners. However, the profit can only increase.
Strategic cooperation plan in the near future?
Mr. Nguyen Xuan Cuong: The newly converted company of PVD focuses on the new generation Premium rig, adding to PVD‘s drilling rigs. Currently, the latest rig of PVD is 9 years old, while other rigs are around 17-20 years old. In the near future, PVD will make efforts to rejuvenate the drilling rig fleet.
The average age of PVD‘s drilling rig is 15 years, which is an advantage for PVD in the current competitive market.
Energy transition trend?
Mr. Nguyen Xuan Cuong: In the next 20 years, how to exploit all resources, including in Vietnam, if not, after a few more decades, it will be difficult to exploit. In the medium-term strategy, PVD will continue to focus on exploiting drilling rigs for the next 5-10 years.
Opportunities for PVD in providing services for the renewable energy sector and energy transition?
Mr. Do Duc Chien – Deputy Chairman of the Board of Directors: In PVD, there is a Joint Stock Company PVD Tech in which PVD holds over 90%. PV Tech is implementing a strategy in the renewable energy sector alongside the traditional industry. Simultaneously, there is a strategy to transfer some of PVD‘s shares in PVD Tech to partners with advantages,
