- We maintain our OUTPERFORM rating for PVD and raise our target price by 35% to VND20,800/share as we increase our 2023-2027F aggregate reported NPAT-MI by 21%. PVD’s implied 2023F P/B at our target price is 0.8x.

- Our higher aggregate 2023-2027F reported NPAT-MI is due to our ~5% higher average day rate assumptions.

- We expect a robust recovery in 2023 with projected recurring NPAT-MI jumping 4x YoY from its minimal base in 2022 due to 1) a 20% YoY higher average jack-up (JU) day rate and 2) the drilling fleet operating at 93% capacity vs 86% in 2022.

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