PVD – Short-term volatility buffered by long-term contract – Update

• Drilling contracts secured for FY20-21F cushion against oil price downside.
• We expect FY20F net profit of US$11.0m (+35.2% yoy) due to solid performance from drilling segment and US$4.3m bad debt provision reversal.
• We upgrade PVD from Hold to Add due to the sharp share price correction. We lower our TP to VND16,500 to reflect FY20-22F EPS cuts.

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