Luan Nguyen

Independent Insight Provider

Equity Bottom-Up

Petrovietnam Drilling And We / Equity Bottom-Up

<p>With OPEC production cut, oil stocks will benefit as oil prices recover. This is our first post on oil &amp; gas companies in Vietnam. Investors need to look beyond current earnings. Vietnam’s oil consumption demand still enjoys a good growth rate thanks to the economy growing at a fairly high level (5-6%) per year. Currently, 2/3 demand for Vietnam’s petroleum products are still imported and this opens up opportunities for O&amp;G industry companies to increase production capacity. The market uncertainty still affects business operations of PVD in the next 1-2 years, but in the long-term, from the end of 2018 onward, we believe that PVD will show some signs of improvement when oil prices exceeds USD60/barrel level. Besides, the end of 2018 and 2019 will be the time for a series of O&amp;G projects such as Ca Rong Do, Block B O Mon... going into operation. Hence, it will be a solid foundation for PVD to rediscover its growth potential.</p>

With OPEC production cut, oil stocks will benefit as oil prices recover. This is our first post on oil &amp; gas companies in Vietnam. Investors need to look beyond current earnings. Vietnam’s oil consumption demand still enjoys a good growth rate thanks to the economy growing at a fairly high level (5-6%) per year. Currently, 2/3 demand for Vietnam’s petroleum products are still imported and this opens up opportunities for O&amp;G industry companies to increase production capacity. The market uncertainty still affects business operations of PVD in the next 1-2 years, but in the long-term, from the end of 2018 onward, we believe that PVD will show some signs of improvement when oil prices exceeds USD60/barrel level. Besides, the end of 2018 and 2019 will be the time for a series of O&amp;G projects such as Ca Rong Do, Block B O Mon... going into operation. Hence, it will be a solid foundation for PVD to rediscover its growth potential.

PVD Will Benefit from OPEC Production Cut