PV Drilling (PVD) announced its business performance estimation for Q3 2015 with total revenue of VND3,423 billion and net profit after tax of VND567 billion (including 2014 net profit sharing from joint venture PVD BakerHughes of VND200 billion), which represent a 38.3 percent and 5.0 percent decrease on the same period of last year respectively. For the first 9 months of 2015, PV Drilling expects to reach VND11,676 billion in revenue and VND1,579 billion net profit after tax.
During the third quarter, PV Drilling successfully performed the periodic overhaul for rig PV DRILLING II and also provided this rig to the new client PVEP Song Hong from the former Lam Son JOC since mid-July. Additionally, rig PV DRILLING III was supplied to PVEP since mid-August after completion the drilling campaign for Vietsovpetro.
Brent crude oil price has made a tremendous change in the third quarter, from above USD60/barrel to USD42–USD43/barrel and currently at USD47-USD48/barrel. As a consequence, drilling rigs’ day rate was also affected.
“Currently, the drilling contracts for our rigs have been renegotiated at a lower day rate of 10%-15% compared to the contracted rate” - said PV Drilling spokeswoman - Madam. Ho Ngoc Yen Phuong (Vice President) at an online meeting to share the potential business development of PVD - “PV Drilling is implementing Cost Optimization project via activities such as salary renegotiation with foreign experts, reduction of headcount and cut off of administration cost, etc. in order to overcome this difficult time and continue to maintain stability and development.”