PVD 2013 02-Jul PDF

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t
PetroVietnam Drilling
Company report
7/2/2013
Private and Confidential
Agenda
Agenda
Case Summary
Company and business overview
Industry analysis
Companys operation analysis
Companys financial analysis
Valuation summary
PetroVietnam Drilling Company (PVD HOSE) - BUY
Investment Case
Investment Fundamentals:
Items (USDmn)
Net revenue
Operating EBIT
Reported net profit
EPS (VND)
EPS growth
DPS (VND)
ROA
ROE
Net debt to equity
FY2012A FY2013E
573
670
91
109
63
79
6,351
7,418
21.7%
14.5%
1,500
1,000
7.0%
7.9%
20.0%
19.7%
82.1%
54.8%
Investment Rationales:
Shareholder
structure as of 31/12/2012
Other
foreign
investors,
30.6%
Other
domestic
investors,
6.2%
PVN 50.5%
We initiate PVD with FY2013E TP of VND60,600, represent a 28.3%

upside potential
Being a subsidiary of PVN, PVD is able to secure many drilling contracts from
PVN and its partners for E&P projects carried out in Vietnam territorial waters
Above-average attractive industry: Vietnam Oil & Gas industry is on the rising
trend as supply is always lagged behind supply for the recent years
Key investment Risks:
Day-rate pricing risk: PVDs day-rate is highly correlated to the regional rig utilization and oil
prices. Any absurd movement in these factors will have significant impact to the companys top
and bottom lines
Political risk: Over the next few years, Vietnams E&P activities will extend eastward and
northward from the current producing Nam Con Son and Cuu Long basins. Potential conflict
over the territorial waters claimed by China and Vietnam will be major issues in the coming
years
Dependency on PVN PVN is owning 50.5% of PVD and having strong influence over the
Companys business strategy and policy (the recent private placement at ~30% discount
compared to market price to PVN is one example)
VCB, 2.6%
PVFC, 4.0%
Attractive valuation, supported by rising day-rates:

PVD is expected to outperform regional peers in terms of ROE (38.7% vs.
15.9%) and ROA (21.6% vs. 5.8%)
PVD is trading at 9.4x EV/EBITDA, 30% discount to regional peers of
13.4x
DB 6.1%
Agenda
Agenda
Case Summary
Industry analysis
Valuation summary
Company profile
Overview of PVD
FY2012A Revenue
Trading
13%
Drilling
services
49%
Technical
services
39%
Established in 2001, a subsidiary of PetroVietnam Group
The sole provider of drilling services in the group
Major domestic player, ~50% driling service maket share (2012)
Emerging international player, operations in Algeria, Malaysia
Net profit USD63.5mn (VND1,697bn) in 2012, a 38% growth

from 2011
Key operations of PVD

FY2012A Gross Profit
Trading
2%
Technical
services,
42%
Drilling
services,
56%
Drilling service
Drilling related
services
5
Operation highlights
#1
Asian Drilling Contractor

in 2012*
Consecutive years of
Zero Lost Time Incident
98,7%
Average utilization rate

in 2012
(*) "The Best Oil and Gas Drilling Contractor in

Asia, 2012" award from the World Finance
Magazine
Shareholder structure & rig fleet
Overview of PVD
PVDs market share by years
80%
60%
60%
50%
PVDs has grown quickly to become a major drilling

contractor. Market share has increased from 10% to 50%.
50%
40%
PVD now owns three jackups, one tender and one land rig.
30%
All three jackup rig have operating depth of 300+ feet in

20%
10%
10%
FY2007A
FY2008A
water. The new tender rig can operate in 5,000 feet,
0%
FY2009A
FY2010A
FY2011A
specializing in deep water areas.
FY2012A
Source: Company data, Macquarie research
Rig name
Type
Water
depth
(ft.)
Drilling
depth
(ft.)
Cost
(USDmn)
Year built
Status
PV Drilling I
Jackup IC
300
25,000
114
2007
Drilling
PV Drilling II
Jackup IC
400
30,000
215
2009
Drilling
PV Drilling III
Jackup IC
400
30,000
215
2009
Drilling
PV Drilling V
Tender
4,000
30,000
220
2011
Drilling
PV Drilling 11
Land rig
NA
NA
20
2007
In Algeria
Hi-spec jackup rig I
Jackup IC
NA
NA
230
2013
To be completed Q4-2013
Hi-spec jackup rig II
Jackup IC
NA
NA
230
2014
To be completed 2H-2015
Corporate structure
Overview of PVD
PVN
PV Drilling
100% owned companies
Subsidiaries
52%
PVD Logging
51%
49%
PVD Offshore
Factories & branches
PVD Training
PV Drilling - Baker Hughes
BJ - PV Drilling
PVD Drilling Division

(PVD DD)
Representative
Office in Algeria
51%
PVD - PTI
PVD Well Services
51%
PVD Tech
PVD
Tubulars Management
51%
Vietubes
PVD Deepwater
51%
PVD - OSI
50%
PVD - FEG
7
Agenda
Agenda
Case Summary
Industry analysis
Valuation summary

Industry analysis
Drilling services in oil & gas production value chain

Carried out by drilling contractors
Source: JP Morgan 2013

9
Relationship between E&P* and Drilling
Industry overview
Est. duration
Services by drilling contractor
Exploration
Development
Development drilling
Geological consultant
Well technical serives
Production
Rig operation
Repair & maintenance
Oil spill services
(*) E&P: exploration & production
2 months 1 year
Explorative drilling
Well testing
3- 5 years
10 20 years
10
Players
GSF, TSF, Diamond
Offshore,
Atwood Oceanic, Ensco,
Seadrill etc.
Weatherford, ITS,
Schlumberger,
Halliburton, International
Logging,
Geoservices
GSF, TSF, Diamond

Offshore,
Atwood Oceanic, Ensco,
Seadrill etc.
Source: PVDs prospectus

Vietnam E&P
Growing activities due to declining oil reserve
Oil & gas shortage projection
Source: NCE Subsea
*FDP: field development plan
Source: PVN
11
Demand for oil is increasing, while

current oil field is declining in
reserve. Demand for E&P and drilling
activities is, thus, expected to grow
faster in near future.
250 wells to be explored between

2011 2015.

Vietnam E&P
Vietnam, the next destination for E&P activities
Vietnam's oil & gas reserves/production ratio (yrs) (2011)
Vietnam has large yet unexplored oil and

gas reserves. The reseve/production ratio
is the highest in Southeast Asia.
With the potentials, Vietnam has attracted
53 companies carrying out E&P activities,
the second most in Southeast Asia.
Source: Macquarie Research
Number of Companies Carrying Out E&P Activities (2011)
Vietnam's proven oil & gas reserves (2010)
Source: Macquarie Research
12
Companies have to go further offshore for E&P activities
Vietnam E&P
millions of m3 oil equivalent
Oil potential by basin

Discovered
Undiscovered
Extensive production in
shallow water makes oil
companies
go
further
offshore for new oil wells.
Source: PVN
Undiscovered oil potentials

lie mostly in deep water
(Nam Con Son, Tu Chinh
Vung May).
Budget for e&p and drilling
activities will, thus, be
increased as it is more
costly to produce oil in
deep water.
Tu Chinh
Vung May basin
13
Notable foreign E&P activities by PVN
Vietnam E&P
Lot Nhenhexky
Lot Nagumanov
Production date: 09/2010
Production date: 11/2012
Lot 433A
Russia
USA
Reserve: 687 mil bbl
Lot SK 305
First production date:
Reserve: N/A
06/2014 (est.)

08./2012
Algeria
Myanmar
Venezuela
Lot M2
Lot Junin 2
Malaysia
Lot PM 304
Reserve: N/A
Reserve: 36bn bbl

Discovered natural
2006

gas in 6/2013
26/09/2012
Production
Development
Exploration
14
Source: PVEP
Demand correlates with oil price, utilization rate & type
Supply/Demand Dynamics
01
02 03
04 05
06 07
08
09
10
11
12
Crude oil prices is highly correlated with

demand for offshore rigs.
Higher demand for rigs leads to higher

utilization rate and day rate.
Rigs with higher operating depth tend to

be preferred over lower ones.
13
Source: Douglas-Westwood 2013
000USD/day
Historical Jack up dayrate
Ulitzation rate of Jackup by types
Source: Morgan Stanley Research 2013
Source: Morgan Stanley Research 2013 15

Supply/Demand Dynamics
Classification of rigs operating in Vietnam

Example
Suppliers
Mobility
Shallow
water
Midwater
Deep & ultra

deep
Typically in Bach Ho field
N/A
Fixed platform
Seadrill: WestAriel,
West Prospero
Vietsovpetro: , Tam
Dao 01, Tam Dao
02
Ensco: ENSCO 107
UMW: Naga 2
PVD: PV Drilling I,
II, III
PV Drilling I, II, III
Jack up
Ocean General
Semisub
Diamond
offshore:
Ocean General
Songa
Offshore:
Songa Venus
PV DrillingV
Tender
PVD: PV Drilling V
Not available
16
Agenda
Agenda
Case Summary
Industry analysis
Valuation summary
17

PVDs operation
Jackup fleet
PV Drilling I
Type
Built/year
Legs
PV Drilling II
Independent legs, Cantilever,

KFELS Singapore/2007
Three legs 437ft
Type
400ft
Legs
Water depth
Max drill depth
25,000ft
Hoang Long JOC.
Japan Vietnam Petroleum Co.,
Clients served
Ltd (JVPC), Petronas Vietnam
Limited
Longest Basement Well Drilled
in 2008
Achievements
04 Years Without LTI
2007-2011
LTI: Lost Time Incident
Built/year
Independent legs, Cantilever

Three legs 517ft
Water depth
400ft
Max drill
depth
Clients
served
PV Drilling III
30,000ft
KNOC,
Petronas Vietnam, PVEP POC.
18
Type
Built/year
Legs
Water depth
Independent legs, Cantilever

Three legs 517ft
400ft
Max drill depth
30,000ft
Clients served
Vietsovpetro
Achievements
02 Years Without LTI

2009-2011
Young & deep water operating jackup fleet
PVDs operation
PvDs feelt is relatively young and deeper operating depth

Fleets water depth
Fleets age
Tam Dao 02
Tam Dao 02
PV Drilling I
PVDs fleet
Tam Dao 01
PV Drilling II
Other contractors
Cuu Long
PV Drilling III
PV Drilling I
Naga 2
Naga 2
WestAriel,
WestAriel,
West Prospero
West Prospero
Ensco 107
Ensco 107
Tam Dao 01
PV Drilling III
Cuu Long
PV Drilling II
0
10
15
20
25
30
35
age
50
100
150
200
250
300
350
400
ft
19

PVDs operation
Tender rig & land rig

PV Drilling 11
PV Drilling V
Type
Builder/ Year Build
IMO Certification
Unit Flag
Overall Length
Water depth
Gross Tonnage
Max Drill Depth
Semi-Submersible Self Erecting

Tender Assist Drilling Rig
KFELS SINGAPORE/ 2011
IMO MODU Code 1989
Vietnam
367 ft
Up to 5,000ft
15,839 T
30,000 ft below mud line
Type
Design
Built/ year
Rig rated depth
Electric VFD Rig

CHUANGYOU GUANGHAN HONGHUA Ltd
HONGHUA/ 2007
5,000m 7,000m for nominal drilling DP 5
PV Drilling 11 is drilling at field MOM-3 of PVEP in Algeria.
PV Drilling V is the 8th TAD in the world, which is the

latest generation of its kind.
20

PVDs operation
Tight bond with PVN helps secure drilling contracts
All of PVDs clients are related to PVN

(PVN owns 50.5% stake in PVD). With
the strong bond, PVD is likeyly to secure
contracts from PVN
With current high demand for E&P

activities, PVDs dayrate & utilization rate
is forecast to grow in near future.
21
High utilization rate & growing dayrate projected
PVDs operation
Rig
Dayrate
(US$)
Client
Start
End
Revenues
Months days - 2013
Owned fleet
PVD's fleet average dayrate
USD/day
250,000
205,000
PVDI
PVD II
PVD III
Cuu Long JOC
150,000 Jul-13 Aug-14
13.0
180
Cuu Long JOC
130,000 Jun-12 Jun-13
12.0
180
Lam Son JOC
150,000 Jul-13 Jul-14
12.0
180
JVPC
140,000 Mar-13 Jun-13
3.0
90
JVPC
130,000 Jul-12 Mar-13
8.0
90
VietsovPetro
162,000 Jul-13 Apr-14
9.0
120
VietsovPetro
150,000 Jan-13 Jun-13
5.0
180
205,000
205,000
205,000
205,000
153,949
153,949
200,000
145,235
150,000
127,165
128,057
30,500
30,500
30,500
30,500
30,500
2011
2012
2013
2014
2015
100,000
50,000
0
Average Day rate

Leased fleet
145,235
1,020
GSF Key Hawaii (IC 300ft) PVEP (Hong Long)
130,000 Jan-13 Sep-13
9.0
270
Ocean Patriot Semisub
Idemitsu
270,000 Sep-12 Apr-13
7.0
120
Ensco 107 jackup
Thang Long JOC
150,000 Mar-13 Sep-13
6.0
210
Naga 2
Hoang Long JOC
162,000 Jul-13 Dec-13
6.0
West Tunaca
PVEP (Dai Hung)
162,000 Jul-13 Dec-13
6.0
Jackup
Average Day rate
163,875
Utilization rate
Land rig
Land rig
FY2011A FY2012A FY2013E FY2014E FY2015E
Land Rig Dayrate
12.5%
95.0%
95.0%
95.0%
95.0%
180
Jackup Own fleet
100.0%
96.3%
96.3%
96.3%
88.6%
180
Semi- tender rig
87.5%
99.0%
99.0%
99.0%
960
Jack-up rig I
99.0%
99.0%
Jack-up rig II
PVD V (TAD)
Tender rig
Bien Dong POC
205,000 Jan-12 Jan-17
60.0
360
GBRS JV
30,500 Jan-12 Jan-14
24.0
360
22
50.0%
Agenda
Agenda
Case Summary
Industry analysis
Valuation summary
23
Revenues & Profit Summary
PVDs finance
Revenues and profit grow steadily thanks to larger fleet and better dayrate
PVD's revenue & profit (USDmn)
40.0%
Revenue CAGR: 13%
573
22.7%
830
35.0%
731
663
35.7%
19.3%
450
25.0%
25.0%
20.0%
20.0%
FY2011A
FY2012A
Net revenue
FY2013E
130
119
81
100
9.7%
FY2014E
EBT
Items (USD million)

Net revenue
Operating EBIT
Reported net profit
EPS (VND)
EPS growth
DPS (USD)
ROA
ROE
Net debt to equity
10.0%
8.7%
Key Margin Ratios
30.0%
30.0%
15.0%
60
1,000
900
800
700
600
500
400
300
200
100
-
26.6%
24.4%
23.6%
11.7%
12.7%
12.2%
FY2013E
FY2014E
FY2015E
24.4%
24.4%
22.3%
22.5%
22.9%
11.6%
11.1%
FY2011A
FY2012A
15.0%
10.0%
5.0%
5.0%
0.0%
0.0%
FY2015E
EBT Growth
26.6%
23.7%
Gross profit margin
EBITDA margin
FY2011A
450
72
52
FY2012A
573
91
63
FY2013E
663
108
78
FY2014E
731
130
93
FY2015E
824
137
97
5,175
6,351
7,355
8,091
8,606
10.1%
6.3%
18.1%
116.6%
21.7%
0.11
7.0%
20.0%
82.1%
13.5%
0.06
7.8%
19.5%
55.0%
7.8%
0.05
8.3%
18.6%
49.3%
4.3%
0.08
8.0%
16.9%
40.5%
24
Net profit margin
Earning drivers
PVDs finance
Drilling services, technical related services are two main earning drivers
PVD's gross profit breakdown
$ mil.
PVD's gross margin by segment
120.0%
Others - Commercials
100.0%
5.7%
2.0%
Technical Services
3.3%
3.1%
Drilling
Drilling
Technical services
Trading
Overall
35.0%
3.3%
29.5%
30.0%
80.0%
24.8%
25.2%
24.8%
22.5%
22.9%
28.0%
25.0%
60.0%
36.2%
38.4%
37.8%
37.4%
41.3%
20.0%
22.3%
24.4%
23.3%
15.0%
40.0%
10.0%
20.0%
5.0%
58.2%
59.5%
58.9%
59.4%
55.4%
0.0%
Dec-15E
Dec-14E
Dec-13E
Dec-12A
Dec-11A
0.0%
FY2011A
FY2012A
FY2013E
FY2014E
Drilling service contributed 59% to companys profit in 2012
2015s gross margin is forecast to decrease as company is planning to have big
FY2015E
maintenances for two months, along with flattening dayrate.
25
Jackup fleets contribute the most to drilling serive
PVDs finance
PVD's drilling gross profit breakdown
PVD's drilling revenue breakdown

100%
2.2%
2.7%
3.1%
90%
19.7%
80%
18.7%
70%
60%
2.6%
2.4%
13.1%
13.2%
9.9%
9.3%
18.2%
39.3%
17.1%
100%
7.4%
90%
2.5%
11.1%
80%
36.8%
40.2%
40%
26.6%
25.7%
32.8%
30.0%
30%
20%
20%
55.6%
40.4%
38.4%
39.5%
35.1%
Dec-11A
Dec-12A
Dec-13E
Dec-14E
Dec-15E
0%
2.9%
9.0%
18.5%
23.8%
60%
40%
2.9%
17.2%
70%
30%
3.5%
14.6%
16.2%
22.8%
9.0%
50%
50%
10%
4.1%
9.2%
79.0%
48.5%
50.3%
47.0%
37.7%
10%
0%
Dec-11A
Dec-12A
Dec-13E
Dec-14E
Dec-15E
Jackup owned fleet
Jackup leased fleet
Tender rig
Jackup owned fleet
Jackup leased fleet
Tender rig
Jack-up rig I
Jack-up rig II
Land Rig Drilling Services
Jack-up rig I
Jack-up rig II
Land Rig Drilling Services
Jackup fleet (including owned and leased fleet) contributed 77% and 63% to drilling revenue &
gross profit in 2012
26
Technical serivces enhance value of drilling serivces
PVDs finance
USDmn
Technical services & others revenue growth
400.0
38%
USDmn
45.0% 100.0
80.0
35.0%
30.0%
20%
200.0
100.0
12%
15%
12%
20%
15%
60.0
25.0%
40.0%
22%
15%
15.0%
15%
20%
20.0
0.0%
-40.0%
-53%
0.0%
Dec-14E
15%
20%
40.0
10.0%
Dec-13E
40%
20.0%
15%
10%
Dec-12A
80.0%
45%
5.0%
Dec-11A
120.0%
92%
40.0%
300.0
14%
Technical services & others gross profit growth
Dec-15E
-80.0%
Technical Services
Dec-11A Dec-12A
Technical Services
Dec-13E
Services revenue growth
Commercial revenue growth
Services gross profit growth
Dec-14E Dec-15E
Commercial gross profit growth
Technical services comes with drilling service as a full package. The higher quality of the
technical service, the more value is added to drilling service.
PVD already has a full range of service so this operation is forecast to stabilize in terms
growth from 2013 to 2015.
27
Planning to construct two new jackups
PVDs finance
Project
Cost
(USDmn)
PVDs capex
(USDmn)
PVDs stake
New Jackup rig I
230
50%
115
New Jackup rig II
230
100%
230
Total
460
1H2013- Q42013 Maintenance capex

2014 2H2015 New capex
Total capex
416
FY 2013E
New Jackup rig I
Total Investment
Debt (70%)
Equity (30%)
New Jackup rig II
Total Investment
Debt (70%)
Equity (30%)
Total investment
FY2013E
Timeline
FY 2014E
115
80.5
34.5
115
115
80.5
34.5
115
FY 2015E
FY2014E
32.1
25.0
25.0
115.0
115.0
115.0
147.1
120.0
120.0
New capex requires more new loan drawn

and, thus, increases interest expense.
115
80.5
34.5
115
Future equity injection and earnings are

expected to offset the increase in debt and
make net debt to equity ratio decrease.
FY2011A FY2012A
FY2013E
FY2014E
FY2015E
98
93
109
104
99
73.0
73.8
88.8
82.2
78.3
Long-term debt
280.9
233.7
225.5
223.8
226.0
Avg interest rate on debt
3.6%
4.1%
4.1%
5.1%
6.0%
(13.0)
(14.5)
(13.6)
(16.9)
(19.6)
116.6%
82.1%
55.0%
49.3%
40.5%
Short term debt
Current portion of long term debt
Interest expense
Net debt to equity
FY2015E
28

PVDs finance
New private placement
Number of shares
Price (VND)
New share issuing
40,000,000
33,000
To PVN
20,152,000
To financial investors
ESOP
Lockup
period
(years)
% discount
to
01/07/2013
price
32,450
30%
17,848,000
45,200
4%
2,000,000
10,000
Notes
Equivalent PVDs book value

on 06/30/2012
According to HSCs daily news
06/17/2013
PVD is to issue 40mn new shares to increase total shares issued to 250mn from
210mn currently
Price issued to financial investors will be based on market price, but not less
than the companys book value at the time of issuance (expected to be
~40,000/share by 1H2013E)
29
Stock price correlated with foregin trading activities
Foreign ownership
PVD Price & Foregin ownership

Close price
('000 VND)
Foreign
ownership
(%) 38
55
DB sold 400k
shares
37.5
PVDs stock price is highly correlated with

foreign ownership. Correlated coefficient
between two series is 0.8.
R2 coefficient = 0.64 shows a high linear

relationship between foregin ownership and
PVDs stock price.
Recent surges and declines in price are

related to remarkable changes in
position of foreign investors (JPM, DB,
Templeton).
Close price
50
Foreign ownership (%)
37
36.5
Market Vectors ETF

bought 600k shares
45
36
Market Vectors ETF

bought 1.0 million
shares
PVD Price & Foregin ownership
40
35.5
PYN Elite
bought 500k
shares
50
R = 0.64
Correlated coefficient: 0.8
45
35
35
Close price
(VND)
55
40
JPM sold 1.2

million shares
34.5
Templeton bought
500k shares
35
30
Source: Thomson One

25
6/22/2013
5/23/2013
4/23/2013
3/24/2013
2/22/2013
1/23/2013
12/24/2012
11/24/2012
10/25/2012
9/25/2012
8/26/2012
7/27/2012
6/27/2012
34
5/28/2012
30
20
34.5
30
35
35.5
36
36.5
Foreign ownership (%)
37
37.5
Agenda
Agenda
Case Summary
Industry analysis
Valuation summary
31
PVD Valuation using P/E, P/B Method
Valuation summary
PVD peer group comparison:

Name
Mkt Cap
(US$m)
ROE
FY12A
(%)
ROA
FY12A
(%)
Div Yield
FY12A (%)
EBITDA
Margin
FY12A
EV/EBITDA
FY12A
PE (x)
FY12A
PE (x)
FY13E
PB (x) PB (x)
FY12A FY13E
PetroVietnam
406
20.0
7.0
2.2
24.4
5.0
7.1
6.2
1.3
1.2
Peer Group Average
614
13.7
6.1
2.1
16.7
6.9
11.7
11.7
1.2
1.2
Top Two Quartile Average
765.9
22.9
9.8
3.3
23.7
6.3
8.4
8.4
1.7
1.7
First Quartile Avg
438.3
29.4
12.6
22.4
5.7
7.7
7.7
1.8
1.8
1,093.40
16.3
3.5
25
6.9
9.2
9.2
1.6
1.6
Third Quartile Avg
632.4
6.6
3.6
1.7
11
8.3
13.4
13.4
0.8
0.8
Fourth Quartile Avg
291.9
2.4
1.1 -
8.2
6.9
16.4
16.4
0.6
0.6
Second Quartile Avg
Valuation
EPS (VND)
BVPS (VND)
P/E (x)
P/B (x)
Fair price @ P/E 8.0x
Fair price @ P/E 1.3x
Target Price (VND)
FY2011A
5,175
29,598
9.3
1.6
FY2012A
6,351
33,545
7.6
1.4
32
FY2013E
7,355
39,578
6.7
1.3
58,842
51,452
55,147
FY2014E
8,091
46,674
6.2
1.1
64,724
60,676
62,700
FY2015E
8,606
54,391
6.0
0.9
68,850
70,709
69,779

Valuation summary
PVD Valuation using EV/EBITDA Method
Valuation
Dec-11A
Dec-12A
Dec-13E
Dec-14E
Dec-15E
106.4
140.0
162.1
195.5
218.6
(0.6)
(11.0)
(11.7)
(11.3)
(10.9)
PVD's Proportionate EBITDA
105.8
129.0
150.4
184.1
207.6
Net Debt
347.3
275.6
254.2
263.4
247.4
Less Minority Net Debt in TAD
(31.3)
(31.3)
(18.8)
(12.5)
(6.3)
PVD's proportionate Net Debt
316.0
244.3
235.4
250.9
241.1
Target EV @ 6.3x
666.3
812.4
947.5
1,160.1
1,307.9
(316.0)
(244.3)
(235.4)
(250.9)
(241.1)
350.3
568.1
712.1
909.2
1,066.8
1.7
2.7
2.8
3.6
4.3
20,828
21,453
22,525
23,652
24,834
64,122
85,961
105,905
Reported EBITDA
Less Minority EBITDA from TAD rig
Less proprtionate net debt

Equity Value
Equity Value/Sh (USD)
VND/USD Fx rate
Equity Value/Sh (VND)
33
PetroVietnam Drilling Corp.s BS and P&L
PVDs finance
Balance sheet
FY2011A
FY2012A
FY2013E
FY2014E
FY2015E
P&L
FY2011A
FY2012A
FY2013E
FY2014E
FY2015E
Cash & equivalents
32
51
80
84
113
Net revenue
Accounts receivable
94
144
167
184
205
Cost of goods sold
(349)
(444)
(511)
(553)
(630)
Inventories
48
38
44
47
53
Gross profit
100
129
152
179
185
Other current assets
14
11
11
11
12
Gen & admin expenses
(27)
(36)
(42)
(46)
(51)
Total current assets
188
244
302
326
383
Selling expenses
(2)
(2)
(2)
(2)
15
22
28
28
28
Operating profit
72
91
108
130
131
670
633
726
781
821
106
140
162
195
211
121
72
91
108
130
131
10
11
11
11
11
890
916
1,074
1,154
1,251
98
93
109
104
99
Total investments
Total net fixed assets
In which: WIP
Total intangible assets
Other LT assets
Total assets
Total short term debt
Operating EBITDA
Operating EBIT
Net income from investments
Net interest
450
573
663
731
815
(3)
(11)
(13)
(12)
(14)
(15)
Net exceptional income
(1)
Pre-tax profit
60
81
100
119
119
Accounts payable
94
107
124
134
152
Accrued expenses
26
37
43
46
52
Taxation
(8)
(12)
(15)
(18)
(18)
Reported net profit
52
63
78
93
93
Other current liabilities
26
36
40
42
46
Total current liabilities
244
273
315
325
349
Total long-term debt
281
234
225
224
226
Other liabilities
66
72
62
52
Total liabilities
591
579
603
Paid-up share capital
117
117
74
105
Long-term accounts payable
Retained earnings reserve

Other reserves
FY2011A
FY2012A
FY2013E
FY2014E
FY2015E
Gross profit margin
22.3%
22.5%
22.9%
24.4%
22.7%
42
EBITDA margin
23.7%
24.4%
24.4%
26.6%
25.8%
602
617
Net profit margin
11.6%
11.1%
11.7%
12.7%
11.4%
136
136
136
ROAA
6.3%
7.0%
7.8%
8.3%
7.7%
171
243
316
ROAE
18.1%
20.0%
19.5%
18.6%
16.3%
34
43
43
43
43
Total equity
299
337
471
552
633
Total liabilities & equity
890
916
1,074
1,154
1,251
Ratios
Net debt to equity
116.6%
82.1%
55.0%
45.6%
34.9%
Current ratio
77.0%
89.2%
95.9%
100.3%
109.7%
Quick ratio
57.2%
75.4%
82.0%
85.9%
94.4%
Cash ratio
13.1%
18.8%
25.5%
25.8%
32.3%
5,175
6,351
7,355
8,117
8,273
10.1%
21.7%
13.5%
8.2%
-0.1%
EPS
EPS growth
EPS (adj. net profit)
4,637
5,060
6,473
7,143
7,280
29,598
33,545
39,578
46,701
54,085
EV/EBITDA
7.3
5.0
4.3
4.0
3.6
PER (x)
8.6
7.1
6.2
5.8
5.8
P/B (x)
1.5
1.3
1.2
1.0
0.9
BVPS
34
y ban xy dng v thc hin chin lc

B phn Ngn hng u t
a ch: 130 Phan ng Lu, Phng 3, Qun Ph Nhun, TP. HCM
T: (84-8) 3995 1483
Website: www.dongabank.com.vn
Ngi lin h: Mr. Nguyn Cao Huynh
TD: 0914.110.101
35

PVD 2013 02-Jul PDF

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

PVD 2013 02-Jul PDF

Caricato da

Copyright:

Formati disponibili

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Company and business overview

Companys operation analysis

Companys financial analysis

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

PetroVietnam Drilling Company (PVD HOSE) - BUY

We initiate PVD with FY2013E TP of VND60,600, represent a 28.3%

Key investment Risks:

Attractive valuation, supported by rising day-rates:

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Company and business overview

Companys operation analysis

Companys financial analysis

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Established in 2001, a subsidiary of PetroVietnam Group

The sole provider of drilling services in the group

Major domestic player, ~50% driling service maket share (2012)

Emerging international player, operations in Algeria, Malaysia

Net profit USD63.5mn (VND1,697bn) in 2012, a 38% growth

Key operations of PVD

Asian Drilling Contractor

Average utilization rate

(*) "The Best Oil and Gas Drilling Contractor in

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Shareholder structure & rig fleet

PVDs market share by years

PVDs has grown quickly to become a major drilling

All three jackup rig have operating depth of 300+ feet in

water. The new tender rig can operate in 5,000 feet,

specializing in deep water areas.

Source: Company data, Macquarie research

Hi-spec jackup rig I

Hi-spec jackup rig II

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

100% owned companies

Factories & branches

PV Drilling - Baker Hughes

PVD Drilling Division

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Company and business overview

Companys operation analysis

Companys financial analysis

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Drilling services in oil & gas production value chain

Source: JP Morgan 2013

Private and Confidential

Uy ban xy dng va thc hin chin lc B phn Ngn hang u t

Relationship between E&P* and Drilling

Services by drilling contractor

(*) E&P: exploration & production

GSF, TSF, Diamond

Source: PVDs prospectus

Private and Confidential