PVT – One-off loss weighs on reported earnings, H1 2024 recurring NPAT-MI surges 48% YoY, in line with expectations - Earnings Flash
  • 2024-07-29T00:00:00
  • Company Research
  • PVT released its Q2 2024 results with revenue of VND3.0tn (+41% YoY) and reported NPAT-MI of VND287bn (-8% YoY). The actual PBT is VND459bn (-7% YoY), which is 30% higher than the preliminary number. 
  • Q2 2024 gross profit and EBIT surged 41% YoY and 52% YoY, respectively. Despite Binh Son Refinery (PVT’s largest crude transportation client) undergoing a turnaround from March 15 to May 1, PVT managed to offset the lower crude transportation volume for BSR by deploying its crude tankers on overseas routes and capitalizing on favorable time charter rates. Additionally, earnings growth was bolstered by new contributions from vessels acquired in 2023 (+35%/67%/57% YoY growth in total fleet/oil product/LPG capacity, respectively).
  • Q2 2024 reported that NPAT-MI decreased 8% YoY, due to a net other loss of VND63bn vs net other income of VND84bn in Q2 2023 (from the tanker divestment gains). We are contacting PVT to have further details on this. Adjusting for these factors, the recurring NPAT-MI for Q2 2024 is VND363bn, representing strong 50% YoY growth. 
  • For its H1 2024 results, revenue was VND5.5tn (+33% YoY) and reported NPAT-MI was VND506bn (+2% YoY). The lower growth in reported NPAT-MI compared to revenue mainly due to a net other loss of VND49bn and 77% YoY increase in financial expenses, which offset the 58% increase in EBIT. We estimate the recurring NPAT-MI is VND602bn (+48% YoY).
  • H1 2024 results are in line with our expectations, completing 45% and 49% of our 2024 respective full-year revenue and recurring NPAT-MI forecasts. As a result, we foresee insignificant risks to our recurring earnings forecast, pending a fuller review.
  • Crude oil and oil product/chemical tanker rates remained higher YoY in H1 2024 as the tonne-miles demand growth still outpaces the tanker supply growth. (1) The Aframax tanker rate (we use this as a benchmark for crude tanker rates) averaged USD48,400/day in H1 2024 (+8% YoY). (2) The medium range (MR) tanker rate (we use this as a benchmark for oil product tanker rates) averaged USD29,900/day in H1 2024 (+6% YoY). (3) The Handymax tanker rate (we use this as a benchmark for petrochemical tanker rates) averaged USD27,700/day in H1 2024 (+9% YoY).

PVT’s H1 2024 results

VND bn

Q2 2023

Q2 2024

YoY

H1 2023

H1 2024

YoY

% of Vietcap’s 2024F

Revenue

2,116

2,994

41%

4,159

5,530

33%

45%

  Transportation

1,801

2,311

28%

3,468

4,414

27%

43%

  FSO, trading & others

315

683

117%

691

1,117

61%

56%

Gross profit

496

698

41%

823

1,224

49%

45%

  Transportation

412

620

50%

673

1,069

59%

45%

  FSO, trading & others

84

78

-7%

149

155

4%

46%

Sales & marketing exp

-3

-4

25%

-6

-6

7%

35%

General admin exp

-101

-99

-2%

-158

-176

12%

37%

Operating profit (EBIT)

392

595

52%

659

1,041

58%

47%

Financial income

97

67

-31%

187

129

-31%

64%

Financial expenses

-88

-149

71%

-169

-300

77%

66%

  In which, interest expense

-78

-99

27%

-148

-206

40%

50%

Share profit/loss from associates

6

9

42%

13

12

-11%

42%

Net other income/loss

84

-63

N.M.

103

-49

N.M.

N.M

NPAT-MI, reported

312

287

-8%

494

506

2%

41%

NPAT-MI, recurring

242

363

50%

408

602

48%

49%

EBITDA

696

991

42%

1,259

1,783

42%

47%

 

 

 

Δ ppts

 

 

Δ ppts

 

Gross profit margin

23.4%

23.3%

-0.1

19.8%

22.1%

+2.4

 

Sales & marketing % sales

0.1%

0.1%

-0.0

0.1%

0.1%

-0.0

 

General admin % sales

4.8%

3.3%

-1.5

3.8%

3.2%

-0.6

 

EBIT Margin

18.5%

19.9%

+1.3

15.8%

18.8%

+3.0

 

Reported NPAT-MI margin

14.8%

9.6%

-5.2

11.9%

9.2%

-2.7

 

Recurring NPAT-MI margin

11.4%

12.1%

+0.7

9.8%

10.9%

+1.1

 

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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