PVD – Strong start for a promising year – [In line] – Earnings Flash

• 1Q26 net profit (NP) surged 100% YoY to VND306bn (USD11.6mn), driven by growth in all core-business segments.
• 1Q26 NP was in line with our expectations at 20.4% of our full-year forecast.
• We see some upward pressure on our target price of VND32,600, which we will update after further review.

Strong 1Q26 revenue driven by growth in all segments\

1Q26 revenue surged 126% YoY to VND3.4tn (USD129mn), driven by broad-based growth across all segments.

• Drilling – the key contributor – recorded 1Q26 revenue growth of 147% YoY to VND2.2tn (USD82mn) on the back of: 1) larger operation-owned rig fleet (4.8 jack-up (JU) rigs vs 3.0 JU rig in 1Q25); 2) a 4% YoY increase in average JU day rate, and 3) increased revenue from hired rigs (3.5 rigs vs one rig in 1Q25)
• Well services revenue increased 72.4% YoY to VND1.0tn (USD38.3mn), reflecting vibrant drilling activities in Vietnam.
• Trading revenue (PVD’s sub-segment) surged 5.4x YoY to VND233bn (USD8.9mn).

Blended GM increased due to drilling GM expansion

1Q26 blended GM expanded 0.8% pts YoY to 18.8% mainly driven by stronger drilling business. Drilling GM increased 2.0% pts YoY to 16.9% due to increased JU utilization (96% vs 75% in 1Q25) and improved JU day rate (+4% YoY). Meanwhile, well services GM also improved 0.6% pts YoY to 24.3%, remaining the most profitable segment.

1Q26 NP surged, in line with our expectation

1Q26 SG&A increased 78.4% YoY to VND207bn (USD7.9mn), aligned with revenue growth. Net financial expenses also increased 46.6% YoY to VND58bn (USD2.2mn) as increased interest expenses (+29% YoY) and net foreign exchange loss (+10x YoY) outweighed higher deposit income (+119% YoY).

In general, 1Q26 NP surged 2x YoY to VND306bn (USD11.6mn), reflecting a strong start to the year. This bottom line was in line with our expectation at 20.4% of our full-year forecast.

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