PV Drilling (PVD) Q1 Net Profit Surges 110% on Higher Rig Utilization

Overview

PV Drilling (PVD), listed on HOSE, reported a strong Q1 2026 earnings beat, with consolidated net profit surging 110% year-on-year to VND 300 billion. Revenue rose 126% to VND 3,401 billion, driven by higher rig utilization and improved rental rates. The results follow a record 2025 and highlight the company’s operational leverage in a favorable offshore drilling cycle.

Key Facts

• Q1 2026 consolidated revenue: VND 3,401 billion, up 126% YoY.
• Q1 2026 net profit after tax: VND 300 billion, up 110% YoY.
• Drilling services revenue: VND 2,162 billion (64% of total), up 147% YoY.
• Well technical services revenue: VND 1,007 billion (30% of total), up 72% YoY.
• Average owned rigs in operation: 4.8 (vs. 3.0 in Q1 2025), after PV Drilling VIII commenced operations in September 2025.
• Average chartered rigs: 3.5 (vs. 1.0 in Q1 2025).
• Jack-up rig day rates increased by approximately 4%.
• Gross profit: VND 638 billion, up 136% YoY.
• 2026 full-year guidance: revenue VND 11,185 billion, net profit VND 800 billion (down 23% from 2025).
• The company plans a 67% stock dividend issuance (up to 371.9 million shares) from retained earnings.

What Happened

PV Drilling released its Q1 2026 consolidated financial statements, showing a sharp acceleration in earnings. The company attributed the growth to a higher number of operating rigs and improved day rates. During the quarter, the average number of owned rigs in operation reached 4.8, up from 3.0 a year earlier, following the deployment of PV Drilling VIII in September 2025. Chartered rigs also increased to an average of 3.5 from 1.0.

Revenue from drilling services, the largest segment, grew 147% to VND 2,162 billion, while well technical services rose 72% to VND 1,007 billion. Gross profit expanded 136% to VND 638 billion, with margins improving slightly. The company ended the quarter with VND 3,129 billion in cash and short-term deposits, total assets of VND 29,542 billion, and shareholders’ equity of VND 17,447 billion.

Market Context

PVD shares closed at VND 33,000 on April 15, 2026, down 1.35% on volume of 2.95 million shares. The stock has been supported by the strong 2025 results and the positive Q1 beat, though the 2026 guidance implies a potential slowdown. The company’s conservative plan, set before the escalation of Middle East tensions, assumes five rigs operating throughout the year, with PV Drilling IX expected to start in Q2 at an average day rate of approximately USD 90,000. PVD trades on HOSE and is a key player in Vietnam’s oil and gas services sector.

Strategic Significance

The Q1 earnings beat demonstrates PV Drilling’s ability to capitalize on increased offshore drilling activity in Vietnam and the region. The addition of new rigs and higher utilization rates suggest that the company is benefiting from a multi-year upcycle in oil and gas investment. The planned 67% stock dividend, while dilutive, indicates management’s confidence in retaining capital for growth. However, the 2026 guidance, which implies a 23% decline in net profit, may reflect caution around potential volatility in day rates and geopolitical risks. The company’s strong cash position and low leverage provide a buffer.

What to Watch

• Q2 2026 earnings release to see if the momentum continues and whether PV Drilling IX contributes as planned.
• Day rate trends for jack-up rigs in Southeast Asia, particularly any impact from Middle East tensions.
• Utilization rates for owned and chartered rigs in subsequent quarters.
• Progress on the 67% stock dividend issuance and any impact on share price and liquidity.
• Full-year 2026 guidance updates, especially if management revises targets upward after the strong Q1.