- PVS announced 9M 2022 results with revenue of VND11.1tn (USD452mn; +14.8% YoY) and recurring NPAT-MI of VND367bn (USD15mn; -29.1% YoY).

- We attribute the revenue growth in 9M 2022 to mechanics & construction (M&C) jobs from international contracts, including the Gallaf Phase 3 and Shwe projects. Meanwhile, the drop in 9M 2022 recurring NPAT-MI was due to 1) thinner margins for the M&C and O&M segments, in addition to 2) a lower guaranteed provision reversal for the M&C segment.

- 9M 2022 profit from FSO/FPSO joint ventures declined 2.1% YoY and surpassed 32.5% of our full-year forecast. However, the day rate renegotiation of FPSO Ruby is ongoing; we thus see risk of a retrospective adjustment if the final day rate is lower than the current rate. We forecast that the FPSO Ruby II’s day rate will decline from USD92,500 in 2021 to USD40,000 in 2022.