Stable profits of PV Drilling in the oil price volatility

Stable profits of PV Drilling in the oil price volatility - 

PetroVietnam Drilling & Well Services Corporation (PV Drilling) (Securities Code: PVD) said that it is estimated that business results in the 3rd quarter of 2015, in which profit after tax is estimated at 567 billion VND, decrease 5.0% over the same period (Q3 / 2014) but increased by 7.9% comparing to the previous quarter (Q2 / 2015). 

Rig of PV Drilling

According to PV Drilling, revenue is estimated at 3423 billion VND, decreased 38.3% over the same period and 10.5% comparing to the previous quarter - level of decline is stronger than profit mainly because of reduction of leased rigs.

Cumulative in 9 first months, PV Drilling estimated at 11,676 billion VND of revenues and 1,579 billion VND of profit after tax.

In Q3, PV Drilling implemented successfully major maintenance of rigs of PV DRILLING II periodically and the terminated contracts with customers of Lam Son JOC and provided customers of PVEP Red River from mid-July.

Besides, rigs of PV DRILLING III successfully completed drilling campaign of Vietsovpetro and provided customers of PVEP from mid- August.

Crude oil prices also fluctuated sharply in Q3, from levels of above $ 60 / barrel fell to the bottom of 42-43 USD / barrel and recovered slightly to the 47-48 USD / barrel at present (for Brent oil). "This affects rental prices of rigs" PV Drilling said.

According to Ms Ho Ngoc Yen Phuong - Deputy CEO of PV Drilling: "Currently, the rig leased contract of PV Drilling was renegotiated with the reduction from 10% - 15%.”

"PV Drilling is strongly focused on implementing solutions that optimize cost, including salary renegotiation with foreign experts and retrenchment, reduce inefficient administrative costs, ... in order to optimized costs, to cope with and overcome the current difficulties, maintain stability and development and business production activities" Ms Ho Ngoc Yen Phuong said.

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