{"id":23168,"date":"2019-06-04T08:20:55","date_gmt":"2019-06-04T01:20:55","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=23168"},"modified":"2019-06-04T08:21:36","modified_gmt":"2019-06-04T01:21:36","slug":"initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess","title":{"rendered":"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)"},"content":{"rendered":"<p><strong>Target price: 24,535<\/strong><\/p>\n<p><strong>Upside: 38.2%<\/strong><\/p>\n<p><strong>Event catalyst:<\/strong><\/p>\n<ul>\n<li>FY 2019 utilization rate to reach 95% vs. 85% last year.<\/li>\n<li>FY 2019 average day rate to reach USD 60,000, up by 7% YoY.<\/li>\n<li>PVD is bidding for a deep water project in Brunei starting in 2020.<\/li>\n<\/ul>\n<p><strong>Extending its operations overseas.<\/strong> PVD mainly operated jackup rigs domestically historically, but it secured contracts for three jackup rigs in Malaysia in 2018 and another rig in 2019. This clearly demonstrates that PVD is not totally dependent on domestic E&amp;P \u2013 a major positive change, in our view.<\/p>\n<p><strong>Short-term catalysts: higher day rates, more workload.<\/strong> Strong oil prices have sent the FY2019E day rate to USD 60.000, a +7% YoY increase. PVD\u2019s 2019 utilization should reach 95%, a remarkable increase from just 85% in 2018. Assuming the market remains hot, we agree with management\u2019s view that the FY2020E day rate may reach USD 65,000 in 2020E.<\/p>\n<p><strong>Yuanta vs consensus.<\/strong> Our 2020E forecasts are 84% higher than the market consensus. We believe the Street is ignoring the potential for the PVD V rig to be operational in Brunei from 2020. We also believe that the consensus has not yet factored in the hired jackup rig that PVD contracted out from October 2019.<\/p>\n<p>We initiate coverage with BUY and VND 24,535 target price (implying 0.7x FY2020E PBR) based on our FCFE model and EV\/EBITDA multiple approach.<\/p>\n<p><strong>Our view:<\/strong>\u00a0PVD is an outstanding competitor with international peers due to its strong safety record, solid management, and ability to provide integrated services. With four jackup rigs already contracted overseas, FY2019E utilization should hit 95% (up 10ppt YoY) with day rates up 7% YoY. PVD\u2019s bid for a Brunei deep-water project could offer stable work for TAD PVD-V for six years starting from 2020. We think the consensus is ignoring a much-improved outlook, and we initiate coverage with a Buy rating on PVD.<\/p>\n<p><strong>Please <\/strong><a href=\"https:\/\/surveys.euromoney.com\/s3\/Asiamoney-Brokers-Poll-2019\"><strong>click here<\/strong><\/a><strong> to support Yuanta Vietnam in this year\u2019s Asiamoney poll!<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Please access the link for our complete report: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/06\/PVD-\u2014-Drill-baby-drill-Becoming-a-global-provider-of-integrated-drilling-servicess.pdf\">PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)<\/a><\/strong><\/p>\n<p><em>Analyst: Binh Truong, <\/em><a href=\"mailto:quang.vo@yuanta.com.vn\"><em>binh.truong@yuanta.com.vn<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000, up by 7% YoY. PVD is bidding for a deep water project in Brunei starting in 2020. Extending its operations overseas. PVD mainly operated jackup rigs domestically historically,&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-23168","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update","analysis-category-initiation-report","analysis-category-oil-gas"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s) | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)\" \/>\n<meta property=\"og:description\" content=\"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess\" \/>\n<meta property=\"og:site_name\" content=\"Yuanta Vietnam\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-04T01:21:36+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess\",\"name\":\"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s) | Yuanta Vietnam\",\"isPartOf\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\"},\"datePublished\":\"2019-06-04T01:20:55+00:00\",\"dateModified\":\"2019-06-04T01:21:36+00:00\",\"description\":\"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,\",\"breadcrumb\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Analysis\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"name\":\"Yuanta Vietnam\",\"description\":\"Asia&#039;s leading Financial Holding Group and Securities Firm\",\"publisher\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\",\"name\":\"Yuanta Vietnam\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\",\"url\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"contentUrl\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"width\":33,\"height\":32,\"caption\":\"Yuanta Vietnam\"},\"image\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s) | Yuanta Vietnam","description":"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)","og_description":"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,","og_url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess","og_site_name":"Yuanta Vietnam","article_modified_time":"2019-06-04T01:21:36+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess","url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess","name":"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s) | Yuanta Vietnam","isPartOf":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website"},"datePublished":"2019-06-04T01:20:55+00:00","dateModified":"2019-06-04T01:21:36+00:00","description":"Target price: 24,535 Upside: 38.2% Event catalyst: FY 2019 utilization rate to reach 95% vs. 85% last year. FY 2019 average day rate to reach USD 60,000,","breadcrumb":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/initiation-of-coverage-pvd-drill-baby-drill-becoming-a-global-provider-of-integrated-drilling-servicess#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en"},{"@type":"ListItem","position":2,"name":"Analysis","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis"},{"@type":"ListItem","position":3,"name":"Initiation of coverage: PVD \u2014 Drill, baby, drill! Becoming a global provider of integrated drilling services(s)"}]},{"@type":"WebSite","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","name":"Yuanta Vietnam","description":"Asia&#039;s leading Financial Holding Group and Securities Firm","publisher":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization","name":"Yuanta Vietnam","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/","url":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","contentUrl":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","width":33,"height":32,"caption":"Yuanta Vietnam"},"image":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/23168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich"}],"about":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/types\/phan-tich"}],"author":[{"embeddable":true,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":0,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/23168\/revisions"}],"wp:attachment":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/media?parent=23168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}