PVD – Narrowing losses in 1Q19 – Update

• Improvements in rig utilisation rate and day charter rate propelled 1Q19 results. Net loss narrowed to US$3.8m in 1Q19 from US$10.5m in 1Q18.
• Although the results fell short of our forecast, PVD’s secured orderbook into 2020F and gradual improvement in day rate are encouraging positives.
• We downgrade to Hold from Add on valuations with lower TP of VND19,600. Better-than-expected revival of the TAD rig could re-rate the stock.

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