PV Drilling to issue 66.9% bonus shares, raise capital to $352 mln for expansion

PetroVietnam Drilling and Well Service Corporation, or PV Drilling (HoSE: PVD), will issue bonus shares equivalent to 66.9% of existing equity, raising its charter capital to over VND9.28 trillion ($352.46 million) as the company prepares to expand its drilling fleet amid a favorable long-term market outlook.

The company said July 15 would be the record date for shareholders eligible to receive the bonus shares, which will be issued from its development investment fund. Shareholders will receive 66.9 new shares for every 100 shares held.

PV Drilling, a subsidiary of state-owned energy giant Petrovietnam, plans to issue 371.9 million bonus shares, increasing its charter capital from VND5.56 trillion to over VND9.28 trillion ($352.46 million). The transaction marks the company's largest capital increase since 2009.

Under a resolution approved at its 2026 annual general meeting, the company opted not to pay a cash dividend and instead issue bonus shares from its development investment fund and retained earnings to finance future expansion.

Chairman Mai The Toan said the issuance could result in a short-term dilutive effect on the stock's market price but added that, over the medium to long term, the company's valuation would reflect its underlying financial strength and operating performance.

Chairman of the board Mai The Toan stated that the issuance of bonus shares could result in a short-term dilutive effect on the stock's market price.

The additional capital is expected to strengthen PV Drilling's balance sheet and improve its ability to pursue large-scale investments as conditions in the offshore drilling market continue to improve.

CEO Nguyen Xuan Cuong said the company sees significant opportunities as global drilling contractors restructure their fleets and drilling rigs, potentially allowing PV Drilling to acquire assets at attractive valuations.

He added that the company could consider doubling its fleet from the current seven rigs as demand for drilling and well services is expected to remain robust through at least 2050.

PV Drilling has reported solid earnings over the past three years, supported by strong utilization and favorable market conditions, with annual net profit ranging between VND550 billion and VND700 billion ($26.6 million).

During the first half of 2026, all of the company's offshore rigs maintained utilization rates above 99%, while the newly acquired PV DRILLING IX rig entered commercial operation in April.

Its rigs continue to operate in Vietnam, Malaysia, Indonesia and Brunei, where day rates have remained stable at around $90,000. Growth in well technical services and drilling manpower supply has also contributed to consolidated earnings.

The company expects first-half revenue and profit to exceed internal targets by about 30% and to post strong year-on-year growth, although it has yet to disclose specific figures.

In the first quarter, PV Drilling reported revenue of over VND3.4 trillion ($129.22 million), up 2.2 times from a year earlier, while net profit doubled to VND300 billion ($11.4 million).

The company attributed the performance to a roughly 4% increase in jack-up rig day rates, an expansion of its owned jack-up fleet from three rigs to the equivalent of 4.8 rigs, and an increase in leased rigs from one to an average of 3.5.

Management said the medium- and long-term outlook for drilling services remains favorable, driven by rising oil and gas exploration and production activity alongside constrained global rig supply. In Vietnam, major projects including Block B-O Mon, Dai Hung Phase 4, Hai Su Vang and Ca Voi Xanh are expected to underpin demand in the coming years.

PV Drilling said it would continue investing in personnel, equipment and technical capabilities while expanding its presence in overseas markets to capture future growth opportunities.

On the Ho Chi Minh Stock Exchange, PVD shares experienced a sharp rally from VND27,400 to VND45,000 per share in March, before correcting to VND31,600 ($1.2) per share on Thursday.