Petrovietnam shipyard arm's pre-tax profit surges over 10-fold

Petrovietnam Marine Shipyard JSC (PV Shipyard), a subsidiary of state-owned giant Petrovietnam, reported a strong first quarter of 2026, with revenue rising sharply and pre-tax profit increasing more than 10-fold year-on-year.

In its Q1/2026 financial statement, PV Shipyard (UPCoM: PVY) posted net revenue of VND400.31 billion ($15.2 million), up 50% from a year earlier. Its gross profit reached VND19.49 billion ($739,870), compared with VND14.84 billion in the same period last year.

Financial income totaled VND3.32 billion ($126,032), while financial expenses stood at VND15.45 billion, including VND4.8 billion in interest costs. Administrative expenses rose to VND6.17 billion, up from VND1.57 billion a year earlier.

As a result, PV Shipyard’s operating profit reached VND1.1 billion ($41,758), a significant improvement from a loss of VND22.65 billion in the prior-year corresponding period.

Plus other incomes, the company reported pre-tax profit of VND1.59 billion ($60,359), more than 10 times higher year-on-year. Its after-tax profit for the quarter came in at VND87.48 million ($3,321), compared with a loss of VND2.47 billion in Q1/2025.

As of March 31, 2026, the firm’s total assets stood at VND1.1 trillion ($41.76 million), slightly down from VND1.22 trillion at the beginning of the year. Liabilities remained elevated, with short-term debt exceeding VND1.59 trillion and long-term debt of VND66.2 billion.

Equity remained negative at minus VND493.01 billion ($18.72 million), broadly unchanged from the start of the year. Accumulated losses reached VND1.09 trillion ($41.38 million), underscoring prolonged financial strain.

However, some liabilities declined modestly, suggesting early progress in balance sheet restructuring. The return to profitability in the first quarter is seen as a positive signal, although earnings remain modest.

Another bright spot is a new contract with PTSC Asia Pacific Pte Ltd (PTSC AP) to supply an anchoring system package, including fabrication, assembly, testing, and delivery.

The contract is valued at $374,200, with expected profit of around 5% of contract value upon completion.

Amid a gradual recovery in the oil and gas sector, the Q1 results indicate early signs of improvement for PV Shipyard. However, with persistent negative equity and a heavy debt burden, the company’s path to sustainable recovery remains uncertain and will require further time to materialize.

In the stock market, PVY closed Monday at VND2,100 ($0.08) per share.