--- title: "PV Drilling Q3 2026: Revenue Rose 25% but Profit Fell 70%" description: PV Drilling posted VND 3,213.5 billion in Q3 2026 revenue, but net profit tumbled 70.5% as leased rig expenses and financial costs compressed margins. url: https://ginity.vn/en/blog/pvd-q3-2026-revenue-growth-profit-decline canonical: https://ginity.vn/en/blog/pvd-q3-2026-revenue-growth-profit-decline markdown: https://ginity.vn/en/blog/pvd-q3-2026-revenue-growth-profit-decline.md language: en datePublished: 2026-11-02T00:00:00+07:00 dateModified: 2026-11-02T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: equity name: Companies & sectors url: https://ginity.vn/en/topics/equity tickers: [] sources: [] publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # PV Drilling Q3 2026: Revenue Rose 25% but Profit Fell 70% > PV Drilling posted VND 3,213.5 billion in Q3 2026 revenue, but net profit tumbled 70.5% as leased rig expenses and financial costs compressed margins. Gini · Companies & sectors · 2026-11-02 · https://ginity.vn/en/blog/pvd-q3-2026-revenue-growth-profit-decline _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Net revenue in Q3 2026 climbed 25.0% year-on-year to VND 3,213.5 billion on fleet expansion, while net profit dropped 70.5% to VND 81.7 billion (parent shareholders' net income down 74.5% to VND 71.0 billion). - Consolidated gross margin contracted from 23.7% to 12.8%, with drilling service gross margin plummeting from 24.1% to 8.8% due to higher leased rig deployment and cost overruns at the Song Doc project. - Outsourced service costs jumped 71.0% to VND 1,250.3 billion and labor expenses increased 30.3% to VND 971.1 billion, severely eroding top-line growth. - Financial expenses mounted as interest costs rose 79.0% to VND 83.0 billion and net FX losses reached VND 39.1 billion, reflecting debt expansion to finance new offshore rigs. The financial performance of PetroVietnam Drilling and Well Service Corporation (PV Drilling, ticker PVD) in Q3 2026 presents a classic case study of top-line expansion separating from bottom-line profitability. Data published in the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf) on October 29, 2026 reveals double-digit revenue growth. However, both gross profit and net profit contracted steeply across the board. This divergence was also examined in depth by the [VNDirect PVD earnings update report](https://www.vndirect.com.vn/vndirect-resource/nextcom/attachment/2026-10-30/PVD_BCKQKD_20261030.pdf) released on October 30, 2026. Surging operational expenses from leased offshore rigs, combined with technical cost overruns at a domestic abandonment well campaign and elevated debt service burdens, compressed margins for Vietnam's primary offshore drilling contractor. ## Divergence between revenue and profit in Q3 2026 In Q3 2026, PV Drilling generated net revenue of VND 3,213.5 billion, representing a 25.0% increase compared to VND 2,570.6 billion recorded in Q3 2025 according to the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf). This top-line increase was driven by fleet expansion, particularly the mobilization of leased jack-up rigs to fulfill drilling programs for domestic and regional exploration and production operators. Across the first 9 months of 2026, cumulative net revenue reached VND 9,647.0 billion, up 47.3% from VND 6,551.3 billion in the first 9 months of 2025. In stark contrast to revenue expansion, consolidated gross profit in Q3 2026 declined 32.6% to VND 410.5 billion compared to VND 609.4 billion in Q3 2025 according to data compiled by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Consequently, the consolidated gross margin dropped sharply from 23.7% down to 12.8%. After accounting for selling expenses, administrative overhead, and net financial charges, pre-tax profit in Q3 2026 stood at VND 162.6 billion, down 55.6% from VND 366.4 billion in Q3 2025 according to data compiled by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Net profit after corporate income tax settled at VND 81.7 billion in Q3 2026, marking a 70.5% contraction from VND 277.1 billion in Q3 2025. Net profit attributable to shareholders of the parent company in Q3 2026 fell 74.5% to VND 71.0 billion from VND 278.2 billion in Q3 2025. | Financial Metric (VND Billion) | Q3 2025 | Q3 2026 | Q3 YoY Change (%) | 9M 2025 | 9M 2026 | 9M YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 2,570.6 | 3,213.5 | +25.0% | 6,551.3 | 9,647.0 | +47.3% | | Cost of Goods Sold | 1,961.2 | 2,803.1 | +42.9% | 5,145.3 | 8,053.5 | +56.5% | | Gross Profit | 609.4 | 410.5 | -32.6% | 1,406.0 | 1,593.5 | +13.3% | | Gross Margin (%) | 23.7% | 12.8% | -10.9 percentage pts | 21.5% | 16.5% | -5.0 percentage pts | | Financial Expenses | 71.6 | 122.1 | +70.5% | 206.1 | 373.2 | +81.1% | | Pre-tax Profit | 366.4 | 162.6 | -55.6% | 887.7 | 820.4 | -7.6% | | Net Profit | 277.1 | 81.7 | -70.5% | 673.0 | 560.1 | -16.8% | | Parent Net Profit | 278.2 | 71.0 | -74.5% | 670.1 | 540.0 | -19.4% | Source: Compiled from [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf) and [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Cost of goods sold growth (+42.9% in Q3 2026) outpaced net revenue growth (+25.0%) as reported in the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf), creating substantial operating leverage in reverse. Investigating such margin compression connects directly with analytical techniques outlined in our guide on [reconciling three financial statements](/en/blog/reconciling-three-financial-statements), where earnings quality is evaluated across cost categories. > Chart: Pre-tax profit performance of PV Drilling across key periods. Billion VND. Q3 2025: 366,4; Q3 2026: 162,6; 9M 2025: 887,7; 9M 2026: 820,4. ## Leased rigs and project cost overruns squeeze margins Breaking down performance across core business divisions clarifies why PV Drilling experienced a gross margin contraction of over 10 percentage points in Q3 2026 according to the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf). Drilling operations represent the core revenue generator of the company. In Q3 2026, drilling services revenue expanded 36.2% to VND 2,037.4 billion compared to VND 1,496.2 billion in Q3 2025 according to financial data verified by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). However, drilling gross profit tumbled 50.3% from VND 360.0 billion in Q3 2025 to VND 178.8 billion in Q3 2026. The gross margin for drilling operations contracted from 24.1% to 8.8%. Gross margin is calculated using the following standard expression: $$\text{Gross Margin} = \frac{\text{Gross Profit}}{\text{Net Revenue}} \times 100\%$$ In Q3 2026, with consolidated net revenue of VND 3,213.5 billion and gross profit of VND 410.5 billion reported in the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf), the realized gross margin stands at: $$\text{Gross Margin} = \frac{410.5}{3,213.5} \times 100\% \approx 12.8\%$$ Three operational drivers account for this profitability erosion: First, an increase in the proportion of chartered external rigs. In Q3 2026, PV Drilling operated an average of 3.7 leased rigs, compared to 1.1 leased rigs in Q3 2025 according to the [VNDirect PVD earnings update report](https://www.vndirect.com.vn/vndirect-resource/nextcom/attachment/2026-10-30/PVD_BCKQKD_20261030.pdf). Because all owned jack-up rigs were fully committed under overseas long-term campaigns, the company leased third-party rigs to capture domestic campaign awards. For chartered rigs, PV Drilling acts primarily as a management operator; charter hire costs are recognized directly within cost of goods sold, resulting in much thinner gross margins than owned assets. The outsourced service cost ratio within total revenue is formulated as: $$\text{Outsourced Cost Ratio} = \frac{\text{Outsourced Service Costs}}{\text{Net Revenue}} \times 100\%$$ In Q3 2026, outsourced service expenses rose 71.0% to VND 1,250.3 billion, representing 38.9% of total net revenue (compared to 28.4% in Q3 2025) according to corporate data compiled by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Concurrently, direct labor expenses climbed 30.3% to VND 971.1 billion. Second, schedule delays and unplanned auxiliary expenses at the Song Doc well plug-and-abandonment decommissioning campaign for operator PVEP-POC. According to the [VNDirect PVD earnings update report](https://www.vndirect.com.vn/vndirect-resource/nextcom/attachment/2026-10-30/PVD_BCKQKD_20261030.pdf), operational complications extended work from Q2 2026 through September 2026, generating auxiliary service costs without corresponding revenue. Third, crew mobilization expenses for preparing the newly inducted jack-up rig PV DRILLING IX, alongside scheduled maintenance downtime for the tender assist rig PV DRILLING V and the jack-up rig PV DRILLING VI during Q3 2026. Technical parameters disclosed on the [PV DRILLING IX jack-up rig overview](https://www.pvdrilling.com.vn/gian-khoan/gian-khoan-tu-nang-pv-drilling-ix) show that bringing new offshore drilling assets into commercial readiness requires substantial upfront engineering and inspection expenditures. ## Domestic and overseas operational margin divide Geographical segment analysis highlights an operational split between PV Drilling domestic activities and its overseas ventures during Q3 2026. Within the domestic Vietnam market, net revenue surged 57.1% year-on-year to VND 2,258.1 billion in Q3 2026, up from VND 1,437.3 billion in Q3 2025 according to financial findings by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). However, domestic gross profit fell 52.5% to VND 116.4 billion compared to VND 245.1 billion in Q3 2025. Consequently, the domestic gross margin dropped to 5.2% in Q3 2026 from 17.1% in Q3 2025. The domestic sector absorbed the bulk of leased rig expenses and the Song Doc cost overruns. In contrast, international markets (including drilling operations in Malaysia, Brunei, Algeria, and Indonesia) generated net revenue of VND 955.4 billion in Q3 2026, down 15.7% year-on-year according to figures in the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf). Overseas gross profit stood at VND 294.1 billion, a 19.3% decrease. Nevertheless, the international gross margin remained resilient at 30.8% in Q3 2026. Proprietary rigs deployed under multi-year contracts with international exploration and production operators continued to deliver cash flow and profitability, echoing maritime sector trends highlighted in our review of [PVT fleet expansion and shipping results](/en/blog/pvt-profit-growth-q3-2026-tanker-fleet-expansion). ## Debt expansion and rising financial charges In addition to gross margin compression, higher financing costs weighed on net earnings in Q3 2026. According to the [VNDirect PVD earnings update report](https://www.vndirect.com.vn/vndirect-resource/nextcom/attachment/2026-10-30/PVD_BCKQKD_20261030.pdf) published on October 30, 2026, net financial charges widened to negative VND 89.0 billion in Q3 2026, expanding negative 55.2% year-on-year. Specifically, interest expense climbed 79.0% year-on-year to VND 83.0 billion in Q3 2026 from VND 46.4 billion in Q3 2025, while net foreign exchange losses expanded 55.2% to VND 39.1 billion in Q3 2026 from VND 25.2 billion in Q3 2025 according to financial data verified by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Surging interest expense reflects debt incurred to finance fleet growth. As of September 30, 2026, total interest-bearing debt stood at VND 6,231.5 billion, up 41.3% from VND 4,409.3 billion as of December 31, 2025 according to the [PV Drilling Q3 2026 consolidated financial statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf). Current maturities of long-term debt due within 12 months totaled VND 966.0 billion as of September 30, 2026. During the first 9 months of 2026, capital expenditures (Capex) totaled VND 1,907.2 billion to fund jack-up rig additions. As highlighted in the [PV Drilling fleet acquisition strategy review](https://www.pvdrilling.com.vn/tin-tuc/tin-pv-drilling/pv-drilling-noi-ve-ly-do-uu-tien-mua-gian-khoan-cu-thay-vi-dong-moi) published on April 24, 2026, the company prioritized acquiring existing rigs at competitive values over newly built rigs to shorten time-to-market. The newly acquired rig PV DRILLING X arrived at shipyard in Vietnam on October 22, 2026 and is scheduled to enter commercial operations in Q2 2027. This energy capital allocation aligns with the broader framework of financing energy transition projects noted by the [Government News Portal](https://baochinhphu.vn/petrovietnam-va-citi-thuc-day-hop-tac-tai-chinh-cho-cac-du-an-nang-luong-102261024101938707.htm). Fleet investments placed temporary pressure on working capital. Net operating cash flow (CFO) for the first 9 months of 2026 dropped 65.8% to VND 111.3 billion from VND 325.0 billion in 9M 2025 according to financial analysis by [Tam An Securities](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty). Operating cash flow covered only 19.9% of net income as capital was absorbed into trade receivables (up VND 481.1 billion) and spare parts inventory (up VND 402.9 billion). ## Analytical perspective on offshore drilling cycles Third-quarter performance for PV Drilling reflects a strategic trade-off common in upstream energy services: accepting compressed near-term margins through chartered capacity to preserve market presence and satisfy client relationships. According to research summaries on [Stockbiz PVD equity analysis](https://web.stockbiz.vn/Reports/85335/pvd-chi-phi-tang-cao-tiep-tuc-bao-mon-loi-nhuan-q3.aspx) published on October 30, 2026, PV Drilling accumulated VND 540 billion in 9-month parent net profit, meeting 36.3% of VNDirect full-year projections. Upstream capacity enhancement initiatives align with state energy exploration directives outlined on the [Government News Portal](https://baochinhphu.vn/pho-thu-tuong-thuong-truc-muc-tieu-tang-truong-hai-con-so-la-yeu-cau-bat-buoc-doi-voi-petrovietnam-10226070918005578.htm). Crucially, major headwinds from Q3 2026 were transitional: 1. The Song Doc abandonment project concluded in September 2026, ending auxiliary cost overruns heading into subsequent quarters. 2. Proprietary rig additions, including PV DRILLING IX and the upcoming PV DRILLING X, are positioned to substitute for chartered capacity, shifting revenue mix toward higher margin owned operations. This review provides objective financial analysis based on verified corporate filings and research notes. Ginity is an independent research aggregator and does not offer equity investment advice or transaction target prices. ## Sources - Government News Portal: [Permanent Deputy Prime Minister: Double-digit growth is mandatory for Petrovietnam](https://baochinhphu.vn/pho-thu-tuong-thuong-truc-muc-tieu-tang-truong-hai-con-so-la-yeu-cau-bat-buoc-doi-voi-petrovietnam-10226070918005578.htm) (09/07/2026) - Government News Portal: [Petrovietnam and Citi advance financial collaboration for energy projects](https://baochinhphu.vn/petrovietnam-va-citi-thuc-day-hop-tac-tai-chinh-cho-cac-du-an-nang-luong-102261024101938707.htm) (24/10/2026) - PetroVietnam Drilling and Well Service Corporation: [Q3 2026 Consolidated Financial Statements](https://www.pvdrilling.com.vn/Data/Sites/1/media/qhcd/bao-cao-tai-chinh/2026/20261029%20-%20PVD%20-%20BCTC%20HN%20Q3%20-%20VND-USD_Signed.pdf) (29/10/2026) - VNDIRECT Securities Corporation: [PVD Q3 2026 Earnings Update Report](https://www.vndirect.com.vn/vndirect-resource/nextcom/attachment/2026-10-30/PVD_BCKQKD_20261030.pdf) (30/10/2026) - Tam An Securities: [PVD Q3 2026 Financial Results Analysis](https://tamanchungkhoan.vn/phan-tich/pvd-quy-3-2026-loi-nhuan-sau-thue-giam-70-5-con-81-7-ty-dong-tien-kinh-doanh-9-thang-111-3-ty) (30/10/2026) - PetroVietnam Drilling and Well Service Corporation: [PV Drilling Offshore Rig Fleet Acquisition Strategy](https://www.pvdrilling.com.vn/tin-tuc/tin-pv-drilling/pv-drilling-noi-ve-ly-do-uu-tien-mua-gian-khoan-cu-thay-vi-dong-moi) (24/04/2026) - PetroVietnam Drilling and Well Service Corporation: [PV DRILLING IX Jack-up Rig Technical Specifications](https://www.pvdrilling.com.vn/gian-khoan/gian-khoan-tu-nang-pv-drilling-ix) (20/05/2026) - Stockbiz Financial Portal: [VNDirect PVD Equity Research Summary](https://web.stockbiz.vn/Reports/85335/pvd-chi-phi-tang-cao-tiep-tuc-bao-mon-loi-nhuan-q3.aspx) (30/10/2026) ## Frequently asked questions ### Why did PV Drilling revenue increase while net profit plunged in Q3 2026? Net revenue grew 25.0% due to additional chartered rigs, but drilling gross margin collapsed from 24.1% to 8.8% as leased rig charter rates elevated cost of goods sold, the Song Doc well abandonment incurred cost overruns, and interest expense surged 79.0%. ### How does leased rig deployment affect PV Drilling gross margin? Chartered rigs allow PV Drilling to meet domestic demand while its proprietary fleet operates under full international contracts, but chartered lease rates are charged directly to cost of goods sold, generating significantly thinner gross margins than owned rigs. ### What drove financial expenses higher for PV Drilling in Q3 2026? Interest expenses jumped 79.0% to VND 83.0 billion because total financial debt climbed 41.3% to VND 6,231.5 billion as of September 30, 2026 to finance jack-up rig acquisitions, coupled with a net foreign exchange loss of VND 39.1 billion. --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._