PVT released H1 2021 results with revenue and recurring NPAT-MI increasing 5.5% YoY and 27.3% YoY, respectively. Revenue growth was driven by a contribution from new chemical tankers acquired in late 2020 and Q1 2021, while the strong net profit growth was thanks to lower costs in H1 2021 vs H1 2020 when 1) COVID-19 disruptions caused elevated operating costs and 2) PVT booked maintenance expenses in advance for drydocking tankers in Q3 2020. 

- H1 2021 capex was VND1.4tn (USD61mn), completing 65.3% of our 2021F forecast as PVT bought a very large gas carrier (VLGC) for USD40mn in Q2, which was earlier than expected. 

- We note that official H1 2021 profit was 18.8% higher than the preliminary number announced at PVT’s June AGM. H1 2021 revenue and recurring NPAT-MI completed 45.0% and 55.6% of our respective 2021F forecasts and were higher than our expectation.

- While the current COVID-19 situation prompts risks of rising operating costs in H2 2021, we foresee upside to our current forecasts from the VLGC profit contribution and potential non-operating profit from the liquidation of the Athena crude tanker in H2, pending a fuller review.