- 2021-07-28T00:00:00
- Company Research
- PVS booked H1 2021 results with revenue and recurring NPAT-MI dropping 35.2% YoY and 34.1% YoY, respectively, which was mainly due to a smaller workload for the mechanics & construction (M&C) segment despite strong profit from the FSO segment. In Q2 2021, PVS’s revenue and recurring NPAT-MI declined 44.5% YoY and 38.6% YoY, respectively. - M&C gross profit in H1 2021 decreased 5.0% YoY and completed 33.3% of our forecast as PVS only had workload from two projects — Gallaf and the Thi Vai LNG terminal — while most revenue/profit from big projects such as Sao Vang-Dai Nguyet (SV-DN) was booked in 2020. - Notably, income from FSO/FPSO JVs rose 91.5% YoY and completed 80.8% of our 2021F forecast, which we believe was due to the contribution from the new FSO SV-DN and the FPSO Ruby’s day rate remaining high. However, as this FPSO’s day rate renegotiation for 2021 and beyond has not been finalized, we foresee insignificant change to our forecast. - H1 2021 revenue and recurring NPAT-MI fulfilled 36.6% and 43.5% of our respective full-year forecasts. These results were within our expectation as we anticipate more M&C jobs will come in H2 2021. We foresee insignificant changes to our current forecasts, pending a fuller review. Figure 1: PVS’s Q2 2021 results
Source: PVS, VCSC estimates. Note: (*) GA expenses surged in H1 2021 because the reclassification of outsourcing costs was previously booked in cost of goods sold. (**) Recurring NPAT-MI excludes the impact of provision expenses for the technical issue at FSO MV12. We treat expense/profit from M&C warranty provisions/reversal (booked in other profit) as a recurring item as this is recurring activity for any contractor. |