Having the total capitalisation volume of VND120tril ($7.5bil), six share items, SJS, STB, FPT, VNM, PPC, and PVD, now account for one-third of the total listing market capitalisation.
Domestic and foreign investors always refer to the prices of the six blue chips when making investment decisions, considering these the barometer of the stock market.
Several days ago, foreign investors were given an unexpected gift: as the securities depository centre made a mistake in defining the foreign ownership ratio in Sacombank, foreign investors could freely purchase many more Sacombank shares. Though the depository centre announced its mistake, foreign investors decided not to sell Sacombank shares in order to reduce the foreign ownership ratio to 30% as required. The event shows the big attractiveness of Sacombank shares (STB).
In the last trading sessions, STB has led the market in transaction volume. However, as the market remains quiet, STB’s price did not increase, selling at VND53,000/share on August 28.
According to Bui Ngoc Tuoc, a securities expert, though STB has high liquidity and low P/E index, it has several shortcomings that may worry investors.
First, STB have been listed in the largest quantity on the market with listed 442mil, many of which have been additionally issued, and at the moments when the demand was lower than supply.
Second, STB has witnessed a lot of changes in staff, while members of management board and their relatives have continuously sold STB recently.
Third, investors still want to keep the ‘wait-and-see’ attitude as they want to know how Sacombank will perform when many foreign banks enter the market and more local banks are set up.
Mr Tuoc said that if the shortcomings could be fixed, STB would still deserve to be listed among investors’ portfolios.
Once the hottest share item on the bourse, SJS has surrendered its first position to another item though it remains influential. When Song Da Corporation (the parent group of SJS) sold 6mil SJS shares, big doubts were left among investors.
Vu Chi Tung, an investor on SSI trading floor, said that this was one of the factors that had prompted him and other investors not to keep SJS any more. “Song Da would not have sold SJS in large quantities if SJS had been actually promising,” he said.
The director of a securities company said that SJS would have difficulty retaining its previous position as the real estate boom was over. Meanwhile, several other real estate firms, which also have big competitiveness, are also going to make IPOs or list on the bourse.
The director said that the actual value of SJS would be somewhere between VND200-250,000/share. If the real estate market does not witness a new price fever, and the company does not have business plans which promise fat profit, SJS will not be able to return to the over VND300,000/share level.
Recently, Vinamilk (VNM) has revealed its intention of listing on a foreign bourse. Together with STB, VNM is a big name among the six blue chips most wanted by investors. If the government approves the raising of foreign ownership ratio, and VNM lists on foreign bourses, VNM price will skyrocket. However, there is always a big gap between expectations and reality.
FPT prices slid dramatically recently from their highest peak. Three reasons have been cited to explain the sharp price decreases 1. bad rumours about FPT, which were not addressed timely 2. TPG registered to sell a large quantity of FPT 3. Two members of FPT registered to sell a large volume of FPT also at that time. Whether FPT prices can recover in the time to come will depend on many factors, while FPT’s management board has committed not to sell shares until the year’s end.
PPC, though having the lowest P/E index among the group of six (less than 17), has the lowest price level, at VND52,500/share.
The paradox has been explained by Electricity Engineer Tran Vinh Nghi: outdated equipment and low management skills both make PPC’s value low.
Meanwhile, PVD has overly high P/E (over 74), while the new projects of the company have not shown efficiency; therefore, investors dare not inject mooney in PVD. Moreover, if wanting to make investment in oil and gas companies, investors will have more choices in the near future, when more oil and gas enterprises are equitised.
Showing posts with label PVD. Show all posts
Showing posts with label PVD. Show all posts
Friday, August 31, 2007
Monday, July 09, 2007
PetroVietnam subsidiaries fare well after equitisation
The Viet Nam Oil and Gas Group (PetroVietnam) said that its subsidiaries have fared well after going public, with their revenues and profits increasing by an average 50 percent and nearly 100 percent, respectively.
The group pointed to the PetroViet Nam Drilling and Well Service Joint Stock Company, whose revenue rose by 67 percent and profit by 142 percent from its yearly plans in 2006 as proof of the efficient operation of its equitised subsidiaries.
Another subsidiary, the PetroViet Nam Construction Joint Stock Company, also reported a 28-percent increase in revenue last year, it added.
Alongside equitisation, PetroViet Nam is boosting the restructuring of its member companies.
So far, the group has transformed four state-owned enterprises into one-member limited liability companies and three joint stock companies into a holding corporation.
Source: VNA
The group pointed to the PetroViet Nam Drilling and Well Service Joint Stock Company, whose revenue rose by 67 percent and profit by 142 percent from its yearly plans in 2006 as proof of the efficient operation of its equitised subsidiaries.
Another subsidiary, the PetroViet Nam Construction Joint Stock Company, also reported a 28-percent increase in revenue last year, it added.
Alongside equitisation, PetroViet Nam is boosting the restructuring of its member companies.
So far, the group has transformed four state-owned enterprises into one-member limited liability companies and three joint stock companies into a holding corporation.
Source: VNA
Wednesday, June 27, 2007
PVD expects H1 revenues to double
Petrovietnam rig operator PV Drilling (PVD) said on Wednesday it expects revenues to more than double in the first half of 2007 from a year ago to 920 billion dong ($57 million).
"The rise in revenues is generated mainly by the rent of our new drilling rig," a company spokesman said.
The firm's first-half net profit was expected to reach 205 billion dong ($12.7 million), more than four times that of a year earlier, he said.
PV Drilling has set a target for whole year revenues of $142.8 million and net profit of $35 million this year.
The spokesman said the Ho Chi Minh City-based firm had signed a contract to rent its PV Drilling I rig to an exploration firm in Vietnam for the 2007-2009 period with a monthly rent of $215,000.
The firm said earlier this month it planned to invest about $200 million to purchase a third jackup drilling rig to meet soaring demand from oil explorers.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. to build its second rig for delivery in 2009.
In March, the firm took delivery of the PV Drilling I rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling officials have said the company would focus on Vietnamese waters for the next few years as exploration activity was expected to pick up in the area, with an estimated 55 to 60 wells to be drilled this year alone.
Source: Reuters
"The rise in revenues is generated mainly by the rent of our new drilling rig," a company spokesman said.
The firm's first-half net profit was expected to reach 205 billion dong ($12.7 million), more than four times that of a year earlier, he said.
PV Drilling has set a target for whole year revenues of $142.8 million and net profit of $35 million this year.
The spokesman said the Ho Chi Minh City-based firm had signed a contract to rent its PV Drilling I rig to an exploration firm in Vietnam for the 2007-2009 period with a monthly rent of $215,000.
The firm said earlier this month it planned to invest about $200 million to purchase a third jackup drilling rig to meet soaring demand from oil explorers.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. to build its second rig for delivery in 2009.
In March, the firm took delivery of the PV Drilling I rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling officials have said the company would focus on Vietnamese waters for the next few years as exploration activity was expected to pick up in the area, with an estimated 55 to 60 wells to be drilled this year alone.
Source: Reuters
Friday, June 22, 2007
Where are billion dollars to be injected?
Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Friday, June 15, 2007
PVD to buy third jackup rig
Petrovietnam's drilling arm, PV Drilling (PVD), plans to purchase a third jackup drilling rig to meet soaring demand from oil explorers, a company official said on Tuesday.
"We have plan to place the order for our third rig within this year," the official from the Ho Chi Minh City-based firm said.
He said the offshore rig would cost around $200 million.
The company has not yet decided on a supplier for the new rig.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. a contract to build its second rig for delivery in 2009.
In March, the firm took delivery of its first rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling said it had already signed a two-year drilling contract worth $150 million with Petrovietnam's oil exploration joint venture for its first rig.
PV Driling officials have said the company would focus on Vietnamese waters for the next few years where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
Earlier this month, PV Drilling's parent state oil Petrovietnam said it would start offering to foreign oil explorers seven offshore oil blocks via a competitive licensing tender on June 11 as part of a drive to shore up the country's crude oil reserves.
Source: Reuters
"We have plan to place the order for our third rig within this year," the official from the Ho Chi Minh City-based firm said.
He said the offshore rig would cost around $200 million.
The company has not yet decided on a supplier for the new rig.
Last month, it awarded a $191 million contract to Singapore's Keppel Corp. a contract to build its second rig for delivery in 2009.
In March, the firm took delivery of its first rig, also built by Keppel Corp, at a cost of $115 million.
PV Drilling said it had already signed a two-year drilling contract worth $150 million with Petrovietnam's oil exploration joint venture for its first rig.
PV Driling officials have said the company would focus on Vietnamese waters for the next few years where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
Earlier this month, PV Drilling's parent state oil Petrovietnam said it would start offering to foreign oil explorers seven offshore oil blocks via a competitive licensing tender on June 11 as part of a drive to shore up the country's crude oil reserves.
Source: Reuters
PVD to raise $38 mln in share issue
Petrovietnam's drilling arm, PV Drilling (PVD), plans to raise $37.8 million via the issue of more than 42 million shares by September as it looks to grow its equipment leasing business and pay a dividend.
Exploration activity around Vietnam is expected to accelerate in the next few years, with 300 wells in operation during 2006-2010, the company said.
Chief Executive Do Van Khanh said in a statement seen on Monday that Petrovietnam Drilling and Well Services Corp. would issue the shares to existing investors and institutions.
PV Drilling said it has a 10% share of Vietnam's drilling market, but has around 80% of the market for providing drilling equipment and well maintenance services.
Ho Chi Minh City-based PV Drilling expects to raise 609 billion dong ($37.8 million) to "contribute 51% of the 1,000 trillion dong registered capital to establish PVD Invest Company and add to business funds," Khanh said.
PVD Invest will import oil rigs and drilling equipment to lease to oil and gas firms operating off Vietnam's coast. In a pre-issue prospectus, PV Drilling said PVD Invest would invest in a $200 million multi-functional jackup rig.
PV Drilling forecast 2007 net revenue would jump 61.8% to 2.3 trillion dong ($142.8 million) and net profit would more than quadruple to 560 billion dong as its new jackup started operations in March.
In August, PV Drilling expects to operate its first land rig in Algeria as part of its business expansion.
Its prospectus showed revenue growth would slow to 8.7% in 2008. It gave no reason for this.
Shares in PV Drilling closed down 2.4% on the Ho Chi Minh Stock Exchange on Monday, valuing the company at a little over $1 billion.
January-March net profit rose to 36.4 billion dong, around 30% of the 2006 full-year net, which itself more than doubled to 120 billion dong.
Khanh said PV Drilling will sell 31.28 million shares to existing shareholders next month under a 100-for-46 plan at 10,000 dong each. The shares will be listed on Aug. 17.
Existing investors are entitled to a 14% dividend payment in shares and a bonus share award, for which PV Drilling will issue a combined 9.52 million shares for listing on July 11.
Institutional investors will bid for the remaining 1.34 million shares before Sept. 4.
As of March 16, state oil and gas group Petrovietnam held 51% of PV Drilling. Foreign institutions and individual investors owned a combined 11.71%, the prospectus said.
State-run Vietcombank, slated for its own IPO in July or August, had a 4.41% stake in PV Drilling.
Source: Reuters
Exploration activity around Vietnam is expected to accelerate in the next few years, with 300 wells in operation during 2006-2010, the company said.
Chief Executive Do Van Khanh said in a statement seen on Monday that Petrovietnam Drilling and Well Services Corp. would issue the shares to existing investors and institutions.
PV Drilling said it has a 10% share of Vietnam's drilling market, but has around 80% of the market for providing drilling equipment and well maintenance services.
Ho Chi Minh City-based PV Drilling expects to raise 609 billion dong ($37.8 million) to "contribute 51% of the 1,000 trillion dong registered capital to establish PVD Invest Company and add to business funds," Khanh said.
PVD Invest will import oil rigs and drilling equipment to lease to oil and gas firms operating off Vietnam's coast. In a pre-issue prospectus, PV Drilling said PVD Invest would invest in a $200 million multi-functional jackup rig.
PV Drilling forecast 2007 net revenue would jump 61.8% to 2.3 trillion dong ($142.8 million) and net profit would more than quadruple to 560 billion dong as its new jackup started operations in March.
In August, PV Drilling expects to operate its first land rig in Algeria as part of its business expansion.
Its prospectus showed revenue growth would slow to 8.7% in 2008. It gave no reason for this.
Shares in PV Drilling closed down 2.4% on the Ho Chi Minh Stock Exchange on Monday, valuing the company at a little over $1 billion.
January-March net profit rose to 36.4 billion dong, around 30% of the 2006 full-year net, which itself more than doubled to 120 billion dong.
Khanh said PV Drilling will sell 31.28 million shares to existing shareholders next month under a 100-for-46 plan at 10,000 dong each. The shares will be listed on Aug. 17.
Existing investors are entitled to a 14% dividend payment in shares and a bonus share award, for which PV Drilling will issue a combined 9.52 million shares for listing on July 11.
Institutional investors will bid for the remaining 1.34 million shares before Sept. 4.
As of March 16, state oil and gas group Petrovietnam held 51% of PV Drilling. Foreign institutions and individual investors owned a combined 11.71%, the prospectus said.
State-run Vietcombank, slated for its own IPO in July or August, had a 4.41% stake in PV Drilling.
Source: Reuters
Tuesday, May 29, 2007
Singapore firm clinches $191mln deal for Vietnam oil rig
Singapore’s Keppel FELS Ltd has won a US$191 million bid to build a jack-up oil rig for state-run PetroVietnam’s recently established arm PetroVietnam Drilling Investment Corporation (PVD Invest).
Poor tax and land policies are stymieing the growth of private enterprises in Vietnam, a conference in Under a contract signed Monday the jack-up rig B299 or PV Drilling II will be customized for PVD Invest’s requirements of operating in water depths of up to 114 meters, deep drilling of down to 9,144 meters, and accommodating over 100 men.
It would be completed in October 2009 and deployed in Vietnam’s territorial waters as well as overseas, the local firm said.
The rig with retractable legs is the second offshore platform contract between the two firms.
Earlier this year Keppel FELS handed over to PetroVietnam Drilling & Well Services Co. (PV Drilling) a $110 million jack-up oil rig that is now operating in Ca Ngu Vang oil field off Vietnam.
PVD Invest’s primary business is investing in oil rigs, equipment, and tools which it leases out.
Keppel FELS Ltd, a wholly-owned subsidiary of Keppel Corp, has, since 1984, built all the major offshore platforms for Vietnam’s oil and gas industry.
One of the world’s leading designers and builders of jack-up rigs, Keppel had 60 percent of the global market in the last decade.
In Vietnam, which has proven oil reserves of over 600 million barrels, some 300 oil wells are likely to be drilled over the next five years.
PetroVietnam said there was an ongoing feasibility study to open up deepwater exploration and production.
Source: Thanh Nien
Poor tax and land policies are stymieing the growth of private enterprises in Vietnam, a conference in Under a contract signed Monday the jack-up rig B299 or PV Drilling II will be customized for PVD Invest’s requirements of operating in water depths of up to 114 meters, deep drilling of down to 9,144 meters, and accommodating over 100 men.
It would be completed in October 2009 and deployed in Vietnam’s territorial waters as well as overseas, the local firm said.
The rig with retractable legs is the second offshore platform contract between the two firms.
Earlier this year Keppel FELS handed over to PetroVietnam Drilling & Well Services Co. (PV Drilling) a $110 million jack-up oil rig that is now operating in Ca Ngu Vang oil field off Vietnam.
PVD Invest’s primary business is investing in oil rigs, equipment, and tools which it leases out.
Keppel FELS Ltd, a wholly-owned subsidiary of Keppel Corp, has, since 1984, built all the major offshore platforms for Vietnam’s oil and gas industry.
One of the world’s leading designers and builders of jack-up rigs, Keppel had 60 percent of the global market in the last decade.
In Vietnam, which has proven oil reserves of over 600 million barrels, some 300 oil wells are likely to be drilled over the next five years.
PetroVietnam said there was an ongoing feasibility study to open up deepwater exploration and production.
Source: Thanh Nien
Thursday, April 19, 2007
Bargain hunters push VN-Index over 1000 points
Vietnam's main stock index rose 3.66% on Wednesday to close at 1,001.12 points, stemming a week-long slide as investors sought bargains.
The VN Index on the Ho Chi Minh City Securities Trading Center is still 14.5% below its lifetime high of 1,170.67 points on March 12. It started falling from 1,033.92 points on April 6.
"Many well-financed investors have returned to the market to look for reasonably priced stocks with positive earning performances in the first quarter and good forecasts for the rest of the year," a Habubank Securities analyst said in Hanoi.
Shares in 102 of the 107 companies listed on the exchange rose on Wednesday, figures from the market showed.
Shares in the second-largest listed firm, dairy product maker Vinamilk (VNM), rose nearly 4.7% to 179,000 dong ($11.1). The company said this week its quarterly net profit jumped nearly 66% to $20 million.
Shares in PV Drilling (PVD), the services arm of state oil monopoly Petrovietnam, rose nearly 4% to 236,000 dong ($14.6), but are still nearly 24% below a year high of 310,000 dong.
The company, which operates offshore oil rigs for Petrovietnam, said last week its revenues this year should rise 70.5% to $143 million on the back of strong demand for rigs.
Shares in FPT (FPT), the largest listed company, rose nearly 1% to 520,000 dong ($32.26), or 22% below their year high of 665,000 dong.
Analysts said the index, which rose 144.5% in 2006, would hover around the psychological level of 1,000 points in the second quarter as investors switched to growth stocks to be auctioned by the government this year, including shares in big state banks, insurance and telecom companies.
Source: Reuters
The VN Index on the Ho Chi Minh City Securities Trading Center is still 14.5% below its lifetime high of 1,170.67 points on March 12. It started falling from 1,033.92 points on April 6.
"Many well-financed investors have returned to the market to look for reasonably priced stocks with positive earning performances in the first quarter and good forecasts for the rest of the year," a Habubank Securities analyst said in Hanoi.
Shares in 102 of the 107 companies listed on the exchange rose on Wednesday, figures from the market showed.
Shares in the second-largest listed firm, dairy product maker Vinamilk (VNM), rose nearly 4.7% to 179,000 dong ($11.1). The company said this week its quarterly net profit jumped nearly 66% to $20 million.
Shares in PV Drilling (PVD), the services arm of state oil monopoly Petrovietnam, rose nearly 4% to 236,000 dong ($14.6), but are still nearly 24% below a year high of 310,000 dong.
The company, which operates offshore oil rigs for Petrovietnam, said last week its revenues this year should rise 70.5% to $143 million on the back of strong demand for rigs.
Shares in FPT (FPT), the largest listed company, rose nearly 1% to 520,000 dong ($32.26), or 22% below their year high of 665,000 dong.
Analysts said the index, which rose 144.5% in 2006, would hover around the psychological level of 1,000 points in the second quarter as investors switched to growth stocks to be auctioned by the government this year, including shares in big state banks, insurance and telecom companies.
Source: Reuters
Friday, April 13, 2007
PVD forecasts 2007 revenue up 70%
PV Drilling (PVD), the service arm of Petrovietnam, has projected revenues this year to jump 70.5% from 2006 to 2.3 trillion dong ($143 million) on the back of strong demand from oil explorers.
This year's net profit is also projected to jump nearly five-fold to 560 billion dong ($34.8 million), the company said in statement published on Thursday via the Ho Chi Minh City Securities Trading Center.
The revenues target is more than 30% higher than a previous forecast by PV Drilling Chief Executive Do Van Khanh in an interview with Reuters in February.
Khanh was not available to comment on the upward revision but a company source attributed the higher-than-expected earnings projection to a series of new drilling contracts since the firm took delivery of its first jack-up rig from Singapore's Keppel Corp. (KPLM.SI: Quote, Profile , Research) in March.
PV Drilling also plans to raise around $32 million from new share issues to establish a company called PVDInvest that will specialise in drilling equipment imports.
On Thursday, PV Drilling shares closed at 248,000 dong ($15.4) each, down 1.2% and shedding around 20% from its year-high of 310,000 dong a share.
Source: Reuters
This year's net profit is also projected to jump nearly five-fold to 560 billion dong ($34.8 million), the company said in statement published on Thursday via the Ho Chi Minh City Securities Trading Center.
The revenues target is more than 30% higher than a previous forecast by PV Drilling Chief Executive Do Van Khanh in an interview with Reuters in February.
Khanh was not available to comment on the upward revision but a company source attributed the higher-than-expected earnings projection to a series of new drilling contracts since the firm took delivery of its first jack-up rig from Singapore's Keppel Corp. (KPLM.SI: Quote, Profile , Research) in March.
PV Drilling also plans to raise around $32 million from new share issues to establish a company called PVDInvest that will specialise in drilling equipment imports.
On Thursday, PV Drilling shares closed at 248,000 dong ($15.4) each, down 1.2% and shedding around 20% from its year-high of 310,000 dong a share.
Source: Reuters
Friday, March 09, 2007
PVD looks for more rigs and contracts
Petrovietnam Drilling & Well Services (PVD), the services arm of state-run Petrovietnam, said it plans to build more offshore drilling rigs and hopes to win more contracts in Vietnamese waters in the next few years.
PV Drilling, which listed on the Ho Chi Minh City exchange on Dec. 5 and now has a market capitalisation of 1.2 billion US$, took delivery of its first jack-up rig named PV Drilling I on Thursday at a Singapore shipyard owned by Keppel Corp.
The 115mio US$ rig that can operate in depths of up to 350 feet in the sea has already won a two-year contract with Petrovietnam's joint venture firm Hoan Vu JOC for drilling at its Ca Ngu Vang field offshore southern Vietnam.
"We do want to build more (rigs). We have got our first and we'll show that we can operate it successfully and then we'll go for more," PV Drilling's General Director Do Van Khanh told reporters at Keppel's Pioneer Shipyard.
Khanh said that for the next few years the company would focus on Vietnamese waters where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
"We will be in Vietnamese waters for the next few years. At this moment we have about eight to ten rigs in Vietnam and most of them are being run by foreign contractors. So for us it's a big market and we will first target Vietnam and maybe in the future we will go beyond Vietnam."
PV Drilling, established five years ago, has scaled up its services from renting out drilling tools and responding to oil spills to drilling for oil and gas.
Tran Ngoc Canh, President of Vietnam Oil and Gas Group, said that oil and gas operators are expected to drill about 900 wells in Vietnam in the next 15 years, including around 300 wells by 2010.
"Vietnam has a big coast line, about 3,000 kilometres (1,864 miles) and is likely to become a huge market for drilling rigs," Cahn said.
He said crude production in Vietnam in the next few years was likely to be around 360,000 barrels to 400,000 barrels per day, making it Southeast Asia's third-largest crude producer after Indonesia and Malaysia.
Khanh said the PV Drilling I has been contracted at a rate of 215,000 US$ per day.
With an operating cost of about 55% of the revenue, PV Drilling should be able to recover the cost of building the rig in about three-and-a-half years' time, he said.
Kanh said the operating cost was much higher than usual as nearly 40% of the 110 men working on the rig would be expatriates.
"This is our first experience with operating a rig and we want to make it a success, so that's why we have foreigners from all over the world working on almost all the key positions on this rig."
Shares of PV Drilling, which is 51-percent owned by Petrovietnam and 10% by foreign funds, have more than doubled in price since the company's listing.
On Thursday, PV Drilling stock closed at 277,000 VND (17.31 US$), off from its peak of 310,000 VND set on Feb 27.
Source: Reuters
PV Drilling, which listed on the Ho Chi Minh City exchange on Dec. 5 and now has a market capitalisation of 1.2 billion US$, took delivery of its first jack-up rig named PV Drilling I on Thursday at a Singapore shipyard owned by Keppel Corp.
The 115mio US$ rig that can operate in depths of up to 350 feet in the sea has already won a two-year contract with Petrovietnam's joint venture firm Hoan Vu JOC for drilling at its Ca Ngu Vang field offshore southern Vietnam.
"We do want to build more (rigs). We have got our first and we'll show that we can operate it successfully and then we'll go for more," PV Drilling's General Director Do Van Khanh told reporters at Keppel's Pioneer Shipyard.
Khanh said that for the next few years the company would focus on Vietnamese waters where exploration activity was expected to pick up, with an estimated 55 to 60 wells to be drilled this year alone.
"We will be in Vietnamese waters for the next few years. At this moment we have about eight to ten rigs in Vietnam and most of them are being run by foreign contractors. So for us it's a big market and we will first target Vietnam and maybe in the future we will go beyond Vietnam."
PV Drilling, established five years ago, has scaled up its services from renting out drilling tools and responding to oil spills to drilling for oil and gas.
Tran Ngoc Canh, President of Vietnam Oil and Gas Group, said that oil and gas operators are expected to drill about 900 wells in Vietnam in the next 15 years, including around 300 wells by 2010.
"Vietnam has a big coast line, about 3,000 kilometres (1,864 miles) and is likely to become a huge market for drilling rigs," Cahn said.
He said crude production in Vietnam in the next few years was likely to be around 360,000 barrels to 400,000 barrels per day, making it Southeast Asia's third-largest crude producer after Indonesia and Malaysia.
Khanh said the PV Drilling I has been contracted at a rate of 215,000 US$ per day.
With an operating cost of about 55% of the revenue, PV Drilling should be able to recover the cost of building the rig in about three-and-a-half years' time, he said.
Kanh said the operating cost was much higher than usual as nearly 40% of the 110 men working on the rig would be expatriates.
"This is our first experience with operating a rig and we want to make it a success, so that's why we have foreigners from all over the world working on almost all the key positions on this rig."
Shares of PV Drilling, which is 51-percent owned by Petrovietnam and 10% by foreign funds, have more than doubled in price since the company's listing.
On Thursday, PV Drilling stock closed at 277,000 VND (17.31 US$), off from its peak of 310,000 VND set on Feb 27.
Source: Reuters
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