“Energy Giants Reap Rewards from the $12 Billion Offshore Mega-Project: Preparing to Dish Out Dividends, Cash Reserves Soar Past the Trillion Mark, and Profits Surpass Targets in Just 9 Months”

November 14th marks the upcoming date for PetroVietnam Technical Services Corporation (PVS) to finalize its list of shareholders to implement a 7% dividend payout in cash for the year 2023, equivalent to VND 700 per share. The expected payment date is December 17th, 2024.

With approximately 478 million shares currently in circulation, PVS is set to disburse roughly VND 335 billion in dividends for this period to its shareholders, aligning with the plan approved at the 2024 Annual General Meeting of Shareholders.

According to the published Q3/2024 financial statements, PVS witnessed a 15% year-on-year surge in net revenue, amounting to VND 4,820 billion. The slower increase in cost of goods sold resulted in a gross profit of VND 334 billion, signifying an impressive 85% growth, alongside an improved gross profit margin of 7%, up from 4% in Q3/2023.

After accounting for various expenses, PVS reported a 4% year-on-year decline in pre-tax profit, amounting to VND 209 billion in Q3.

However, with a deferred tax income of over VND 57 billion, PVS’s net income reached VND 193 billion, a substantial 34% increase compared to the same period last year. The net income attributable to the parent company (net income) decreased by 4% to VND 135 billion


.

For the first nine months of 2024, PVS’s net revenue reached VND 14,101 billion, reflecting a 12% year-on-year increase. In contrast, net income attributable to shareholders declined by 17% to VND 707 billion.

In 2024, the company set consolidated revenue and net income targets of VND 15,500 billion and VND 660 billion, respectively, representing decreases of 29% and 38% from the record-high levels. With the aforementioned results, PVS surpassed its annual profit plan by 7% within just three quarters.

As of September 30th, 2024, PVS’s total assets amounted to VND 27,342 billion, reflecting an increase of VND 926 billion from the beginning of the year. Of this, cash and bank deposits stood at VND 11,488 billion, equivalent to 42% of total assets. Short-term receivables also witnessed a slight increase, reaching VND 4,256 billion.

In the stock market, PVS shares are currently trading at VND 37,900 per share.

Anticipating Significant Benefits from Vietnam’s $12 Billion Offshore Super-Project

PVS, as a subsidiary of the Vietnam Oil and Gas Group (PVN), is the sole domestic provider of comprehensive oil and gas technical services (excluding drilling services). PVS holds a dominant market share in related sectors, such as oil and gas technical vessel services (97%), oil and gas mechanics, and port-based services (100% in the port segment), as well as FSO/FPSO floating storage and offloading services (60%). PVS owns and operates a fleet comprising 21 service vessels, 3 FSO vessels, and 2 FPSO vessels.

In a recent report, VCBS highlighted the potential for PVS to boost its revenue and profit growth through two main segments: traditional oil and gas, with significant progress in large-scale projects like the B – O Mon Lot and Lac Da Vang, recently approved by the government; and renewable energy, including offshore and onshore wind power projects, as the Government strongly promotes renewable energy sources to facilitate the energy transition. The positive signal from the resumption of domestic oil and gas projects is expected to contribute to the growth of PVS’s business results. For the Lac Da Vang project, PVS secured contracts worth $262 million for M&C and $250 million for FSO.

Additionally, the B O Mon Lot has made considerable headway, with the first gas flow anticipated in 2027. On September 3rd, Phu Quoc Oil and Gas Operating Company officially awarded the EPCI 1 contract, valued at approximately $1.1 billion, to American contractor McDermott and PetroVietnam Technical Services Joint Stock Corporation (PVS), with PVS’s share amounting to $500 million.

Specifically for 2024, VCBS anticipates a promising performance for PVS, with robust revenue growth driven by the expansion of the oil and gas engineering and renewable energy segments. The expected revenue and profit figures stand at VND 24,323 billion and VND 1,086 billion, respectively, reflecting a 26% year-on-year increase in revenue and a 2% rise in profit. These figures surpass the set plans and represent significant improvements compared to the previous year.