- 2024-01-29T00:00:00
- Company Research
- PVT released its Q4 2023 results with revenue of VND2.8tn (+13% YoY) and reported NPAT-MI of VND230bn (+10% YoY). Q4 2023 reported NPAT-MI growth YoY is due to (1) contributions from new vessels acquired, coupled with (2) 50% gross profit growth from the floating oil storage (FSO) & Other segment.
- PVT delivered a reported NPAT-MI completing 99% of our full-year forecast. In 2023, revenue was VND9.5tn (+5% YoY), reported NPAT-MI of VND980bn (+14% YoY), and recurring NPAT-MI of VND882 (+30% YoY).
- The robust growth in 2023 recurring NPAT-MI is due to (1) 29% YoY higher gross profits from the transportation business, thanks to new contributions of new tankers acquired in 2022 and 9M 2023, coupled with 5-15% YoY higher tanker rates. This outweighs (2) a 31% decrease in the FSO & Other segment driven by losing an O&M contract for FPSO Lewek Emas. Meanwhile, recurring NPAT completed 94% of our 2023 projection mainly due to a 14% higher-than-expected depreciation expense (which we attribute to the company’s fast depreciation policy).
- For 2024’s outlook, we foresee a slight upside potential to our NPAT forecast, as we have not factored in one oil product tanker, named PVT Avira. This tanker has a capacity of 45,000 DWT, which contributes to 10% of PVT’s oil product/chemical tanker fleet capacity. As of our latest update report, we project reported NPAT-MI and recurring NPAT-MI growth of 22% and 27% in 2024, respectively, which is mainly due to the solid foundation in place after expanding its oil product/chemical and LPG fleet capacity by 67% and 56%, respectively, in 2023.
- We currently expect the tanker rates for crude oil and the oil product market to be resilient in 2024 (flat YoY) as the tonne-miles demand growth still outpaces the tanker supply growth. The Aframax tanker time charter rate (a benchmark crude tanker rate) rebounded by 32% QoQ in Q4 2023 and ended 2023 slightly decreasing 2% YoY. Despite the slight drop, the Aframax rate in 2023 was still 113% higher than the 2017-2019 average. The medium range (MR) tanker (a benchmark oil product tanker) recovered by 7% QoQ, and ended 2023 increasing 33% YoY. The average time charter rates for MR in 2023 were 99% higher than the 2017-2019 average.
PVT’s 2023 results
VND bn | Q4 2023 | YoY | FY 2023 | YoY | % of Vietcap’s 2023F |
Revenue | 2,753 | 13% | 9,487 | 5% | 90% |
Transportation | 2,149 | 20% | 7,578 | 17% | 83% |
FSO, trading & others | 604 | -8% | 1,909 | -26% | 132% |
Gross profit | 501 | 14% | 1,853 | 12% | 93% |
Transportation | 407 | 8% | 1,530 | 29% | 91% |
FSO, trading & others | 95 | 50% | 323 | -31% | 105% |
Sales & marketing exp | -3 | -37% | -13 | 4% | 85% |
General admin exp | -164 | 19% | -412 | 1% | 98% |
Operating profit (EBIT) | 334 | 13% | 1,428 | 16% | 92% |
Financial income | 95 | 8% | 373 | 69% | 101% |
Financial expenses | -138 | 67% | -469 | 49% | 98% |
In which, interest expense | -107 | 44% | -343 | 60% | 98% |
Share profit/loss from associates | 8 | -5% | 26 | -5% | 95% |
Net other income/loss | 57 | 0% | 203 | -29% | 139% |
NPAT-MI, reported | 230 | 10% | 980 | 14% | 99% |
NPAT-MI, recurring | 207 | 84% | 882 | 30% | 94% |
|
| ppts change |
| ppts change |
|
Gross profit margin | 18.2% | +0.3 | 19.5% | +1.2 |
|
Sales & marketing % sales | 0.1% | -0.1 | 0.1% | -0.0 |
|
General admin % sales | 6.0% | +0.3 | 4.3% | -0.2 |
|
EBIT Margin | 12.1% | +0.1 | 15.0% | +1.4 |
|
Reported NPAT-MI margin | 8.3% | -0.2 | 10.3% | +0.9 |
|
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).
Powered by Froala Editor