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PetroVietnam Drilling Expects to Beat Full-Year Earnings Target

PetroVietnam Drilling & Well Services Joint-Stock Co., the country’s biggest listed oilfield services provider, expects full-year profit to beat its forecast after first-half earnings climbed 45 percent, buoyed by an increase in rates for drilling rigs.

After-tax profit may reach 2.2 trillion dong ($104 million) in 2014, 33 percent above the target of 1.65 trillion dong the company set earlier this year, Deputy General Director Ho Ngoc Yen Phuong said yesterday in an e-mailed response to questions. First-half net income jumped to 1.25 trillion dong, while revenue climbed 45 percent to more than 9.5 trillion dong, Phuong said.

“Drilling services continue to play a key role, making a major contribution to the growth of revenue and earnings,” Phuong said. Daily leasing fees for PetroVietnam Drilling’s jack-up rigs have increased 15 percent to an average of between $150,000 and $160,000 a day, she said.

The Ho Chi Minh City-based company has been operating 5 rigs its owns and 7 hired rigs since the middle of 2103, bringing the total it operates directly and indirectly to 12, Phuong said. “These rigs are operating very effectively, with productivity more than 97 percent,” she said.

Shares of PetroVietnam Drilling, partly owned by Deutsche Bank AG, have rallied 50 percent this year, outpacing the 19 percent advance in the benchmark VN Index. (VNINDEX)

The oilfield services provider is a unit of Vietnam Oil & Gas Group, known as PetroVietnam.

To contact the reporter on this story: Nguyen Kieu Giang in Hanoi at giang1@bloomberg.net

To contact the editors responsible for this story: Michael Patterson at mpatterson10@bloomberg.net Dick Schumacher

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