No longer attracting cash flow like at the beginning of the year when oil prices were high, shares of Vietnam Petroleum Technical Services Corporation (PTSC, code PVS) are continuously falling in price.
No longer attracting cash flow like at the beginning of the year when oil prices were high, shares of Vietnam Petroleum Technical Services Corporation (PTSC, code PVS) are continuously falling in price.
After rising for 3 months after Lunar New Year this year, PVS stock price has continuously decreased and has dropped to near the low of the beginning of the year. Specifically, PVS stock increased from 36,000 VND/share on February 23 to 45,800 VND/share on May 23, then quickly entered a downtrend. As of November 4, PVS stock price decreased to 37,700 VND/share and continued the downtrend.
There are many reasons for the recent decline in PVS shares. Mr. Lam Van Van, representative of ECI Capital Investment Fund, commented: “Oil and gas stocks are of interest to many investors and are therefore very sensitive to new information. In particular, the recent decline in oil prices due to concerns about weakening demand from China has affected investor sentiment. Accordingly, a series of large oil and gas stocks such as OIL, BSR, PVD, etc. have been sold heavily. Therefore, the recent decline in PVS shares is mainly due to psychological factors and adjustments in the oil and gas industry and the market.”
In fact, although PVS shares have fallen again recently, analysis units such as Vietnam Joint Stock Commercial Bank for Foreign Trade Securities (VCBS) still positively assess PTSC's business situation. VCBS forecasts that PTSC's profit in 2024 will increase by 2%, to VND 1,086 billion; in 2025, profit will increase by 42%, reaching VND 1,541 billion. Meanwhile, MB Securities (MBS) forecasts that PTSC's profit in 2024 will increase by 7.7%, to VND 1,105 billion; in 2025, it will continue to increase by 30.2%, to VND 1,439 billion.
PTSC's growth momentum is forecast to come from the traditional oil and gas sector as the progress of major domestic projects is being accelerated, such as the Block B - O Mon and Lac Da Vang Projects; along with the great potential of the renewable energy sector such as offshore and onshore wind power projects.
In fact, although the business results for the third quarter of 2024 have not been announced, PTSC's business results for the first half of 2024 show positive results. In particular, the Company recorded a 10.3% increase in revenue to VND 9,281 billion; profit after tax increased by 11.1% to VND 514 billion and gross profit margin improved from 4.6% to 5.4%.
In addition, regarding the expansion of business into renewable energy, PTSC said that to meet the large capital demand in the direction of developing the offshore renewable energy sector, PTSC also planned its finances until 2030 with a capital demand of up to VND 70,640 billion.
Mr. Le Manh Cuong, General Director of PTSC shared that the Company has no plans to participate in domestic offshore wind power projects and is only focusing on wind power export projects. In particular, the wind power export project to Singapore is selecting a survey contractor, and is expected to complete the selection of a survey contractor by the end of this year or at the latest by early 2025.
It is known that according to the plan, the project to export wind power to Singapore is implemented with partner Sembcorp Utilities Pte Ltd (SCU), a member unit of Sembcorp Industries Limited. Accordingly, the PTSC & SCU Joint Venture will jointly study and invest in building an offshore wind farm in Ba Ria - Vung Tau province, with a total installed capacity of about 2,300 MW to export clean electricity to Singapore.
Regarding capital needs, according to PTSC's shared implementation plan for the 2024-2030 period, the need for equity capital is VND 17,641 billion. Of which, VND 4,720 billion is for the 2024-2025 period and VND 12,921 billion is for the 2026-2030 period.
Mr. Le Manh Cuong shared: “PTSC is considering options such as not paying cash dividends and using all annual profits to supplement the development investment fund; increasing charter capital through issuing shares for sale, issuing shares to pay dividends... (the specific capital mobilization plan has not been announced and is seeking opinions).
Source: https://baodautu.vn/gia-dau-khong-con-neo-cao-co-phieu-pvs-lien-tuc-bien-dong-d229274.html
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