PVT – New vessels acquired in 2023 drive Q1 2024 recurring 44% YoY jump in NPAT-MI – Earnings Flash
  • 2024-04-26T00:00:00
  • Company Research
  • PVT released strong Q1 2024 results with revenue of VND2.5tn (+24% YoY) and reported NPAT-MI of VND231bn (+27% YoY). This performance was mainly supported by (1) 72% YoY higher gross profit from the transportation business driven by new contributions of new vessels acquired in 2023, coupled with higher tanker rates; and (2) 13% YoY higher gross profit from the floating oil storage & other segment.
  • Q1 2024 results are in line our expectations, which are equivalent to 21% and 19% of our revenue and reported NPAT-MI full-year forecasts, respectively. Therefore, we foresee insignificant changes to our earnings forecast, pending a fuller review.
  • We maintain our BUY rating with a target price of VND30,100/share, as stated in our recent PVT update report dated April 25, 2024

Crude oil and oil product/chemical market remained favorably intact in Q1 2024 with the international average tanker rate higher YoY. In Q1 2024, the average Aframax tanker time charter rate in the international market (we use this as a benchmark for crude tanker rates) increased to USD43,700/day (+14% YoY; +11% QoQ), and the average of the medium range (MR) tanker time charter rate in the international market (we use this as a benchmark for oil product tanker rates) increased to USD28,900/day (+1% YoY; +11% QoQ). We anticipate the tanker rate for both segments to remain high in 2024 as the tonne-miles demand growth still outpaces the tanker supply growth. We believe this development will support PVT’s 2024 outlook.

PVT’s Q1 2024 results

VND bn

Q1 2023

Q1 2024

YoY

% of Vietcap’s 2024F

Revenue

2,043

2,536

24%

21%

  Transportation

1,666

2,103

26%

20%

  FSO, trading & others

377

433

15%

22%

Gross profit

326

526

61%

20%

  Transportation

261

449

72%

19%

  FSO, trading & others

66

74

13%

22%

Sales & marketing exp

-3

-3

-9%

16%

General admin exp

-57

-77

36%

16%

Operating profit (EBIT)

266

446

67%

20%

Financial income

90

62

-31%

31%

Financial expenses

-81

-139

70%

31%

  In which, interest expense

-70

-108

54%

26%

Share profit/loss from associates

7

3

-61%

10%

Net other income/loss

19

14

-26%

54%

NPAT-MI, reported

182

231

27%

19%

NPAT-MI, recurring

166

239

44%

19%

 

 

 

ppts change

 

Gross profit margin

16.0%

20.7%

+4.8

 

Sales & marketing % sales

0.2%

0.1%

-0.0

 

General admin % sales

2.8%

3.0%

+0.3

 

EBIT Margin

13.0%

17.6%

+4.5

 

Reported NPAT-MI margin

8.9%

9.1%

+0.2

 

Source: PVT, Vietcap, (Note: Recurring NPAT = operating profit + interest income – interest expense + income from JVs (not accounting for FX gain/loss and profit from asset disposal)

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