PV Drilling completes annual business plan in 6 months

Petrovietnam Drilling and Well Service Corporation (PV Drilling), a Petrovietnam subsidiary, has completed 100% of the company’s business plan for 2023.

The information was announced by PV Drilling general director Nguyen Xuan Cuong at a review meeting held early this week.

PV Drilling, listed on the Ho Chi Minh Stock Exchange (HoSE) as PVD, has set a consolidated revenue target of VND5.4 trillion ($229.09 million) for 2023, down VND31 billion ($1.3 million) compared to the previous year.

It expected to make an after-tax profit of VND100 billion ($ 4.24 million) in the year, against a loss of VND155 billion ($6.57 million) in 2022.

In the first quarter of 2023, PV Drilling recorded consolidated net revenues of VND1.23 trillion ($52.04 million), up 7% year-on-year; and a post-tax profit of VND52.3 billion ($2.2 million), more than half of the annual plan.

With optimistic signs from crude oil prices, the demand for leasing rigs increased sharply and since supply was limited, the unit price of services improved significantly, Cuong said.

On May 16, PV Drilling had approved a three-year plan until 2025 to restructure the corporation. Accordingly, on June 23, the board of directors decided to terminate operations or cease the process of establishing branches in Myanmar, Algeria, Malaysia, Thailand, và Brunei based on the actual situation and availability of licenses to operate in the host countries.

Of these, Brunei and Malaysia were the firm's two key markets. In the Brunei market, PV Drilling is carrying out a program under a contract with customer Brunei Shell Petroleum Company Sdn Bhd (BSP). This is the corporation’s longest drilling contract with a term of six years, with two options for renewal of two years each.

In the Malaysian market, the corporation maintains the PV Drilling III rig. The company is expected to expand operations with 2-3 long-term jack-up rigs in the market in the near future, combining it with the provision of technical and other service packages.

On the HoSE, the PVD shares closed Thursday’s session at VND24,500 ($1.04).