A PV Drilling jackup rig I. — Photo pvdrilling.com.vn

Foreign investment fund Dragon Capital has announced that its ownership share in PV Drilling has decreased to 4.92 per cent, and it no longer holds a major shareholder stake in the company.

DC Developing Markets Strategies Public Limited Company, a member fund of the Dragon Capital fund group, disclosed the sale of 500,000 PVD shares from PV Drilling on September 19.

Following this transaction, Dragon Capital's stake in PV Drilling decreased from 5.01 per cent to 4.92 per cent, meaning it no longer holds a significant shareholder position.

At the closing price of VNĐ25,750 per share on September 19, DC Developing Markets Strategies Public Limited Company is estimated to have generated close to VNĐ13 billion (US$528,240) from the sale.

In the first half of the year, PV Drilling's gross revenue reached over VNĐ4 trillion with a net profit of VNĐ281 billion, up 53 per cent and 34 per cent year-on-year, respectively. The achievement fulfils 65 per cent of the firm's revenue target and 74 per cent of the profit goal for the year.

Some financial institutions suggest that upcoming long-term contracts for jackup rigs and investments in new rigs will be key growth drivers for PV Drilling.

PV Drilling said that three of their four jackup rigs, including PV DRILLING I, II and VI, are set to secure new contracts, although rental prices are yet to be finalised.

BIDV Securities Company (BSC) expects a slowdown in rental rate increases in the Southeast Asian market, while overall rental rates in the region are expected to remain positive.

Currently, jackup drilling rigs rent for about $150,000 per day in the region, up 8 per cent since the year's start, promising profits for PV Drilling.

PV Drilling leases rigs at around $98,000 daily but anticipates a $110,000 rate with new contracts.

The company plans to invest $90 million in an additional used rig, seeking cost-effective options for higher operational efficiency and profitability. — VNS