group assignment petro vietnam drilling and well service corporation pvd

Overview of PetroVietnam Technical Services Corporation PVS:PetroVietnam Technical Services Corporation PTSC is a member of the Vietnam National Oiland Gas Group PVN.PTSC was established

ASSIGNMENTTABLE OF CONTENT

II.Ratio Analysis

1 Current ratio (working capital ratio)2 Quick ratio

3 Debt to asset ratio

6 Inventory turnover7 Days sale uncollected8 Accounts receivable turnover: 9 Total asset turnover10 Times interest earned11. Earning per share (EPS)

12 Price-Earnings Ratio(P/E):13 Debt-to-equity ratio:14 Return on equity

III.EvaluationIV.ConclusionIV.Reference

I.Introduction:1.Member of the team

Lê Thị Thảo My – SS181143Trần Doãn Thục Loan - SS181228

2 Viet Nam oil and gas industry overview:

Vietnam Oil and Gas Group, often known as Petrovietnam or PVN, was a state-owned firmfounded on September 3, 1975 It was originally known as Vietnam Oil and Gas General

Department Petrovietnam is engaged in the energy sector, including oil and gas and renewable

energy Petrovietnam has been growing into a fully integrated business model, ranging fromexploration - production, refinery – petrochemical, gas industry, gas to power/fertilizer andpetroleum technical services As a leading corporation, the group has a key role in acceleratingnational economic growth, high-qualified human resources development, internationalintegration, and overseas investment.

Petrovietnam Drilling and Well Service Corporation (PV Drilling) was established in 1994, in2006 operated under the joint-stock model PV Drilling operates in the field of providing drillingrigs, technical services on drilling and wells, and human resource supply services in the field ofoil and gas drilling and wells (offshore and onshore) Since its establishment, PV Drilling hasmade strong development steps, becoming one of the leading corporations in the Vietnam Oiland Gas Group, a reputable drilling contractor and well service provider in the market With amodern equipment system and a team of experienced engineers, PV Drilling has been bringingmany benefits to the company and customers in fields such as oil and gas drilling service, anddrilling equipment operation , seam testing, geophy.cs PV Drilling will continue to developdrilling services in deeper seas and overseas markets to serve the exploration and exploitation ofoil and gas energy sources for Vietnam and the world.

4 Overview of PetroVietnam Technical Services Corporation (PVS):

PetroVietnam Technical Services Corporation (PTSC) is a member of the Vietnam National Oiland Gas Group (PVN).

PTSC was established in February 1993 based on merging 2 units, Petroleum Services Company(PSC) and Geophysical and Petroleum Services Company (GPTS) After nearly 30 years ofdevelopment, PTSC has made great progress and is considered as the leading corporation in thefield of providing oil, gas and industrial engineering services in Vietnam a big brand in the oiland gas industry.

PTSC's main field of activity is providing technical services for oil and gas industry In which,there are many types of strategic, spearhead services, which have been developed andprofessionalized to an international level such as: EPCI marine works; EPC industrial works;Floating warehouse for processing and exporting crude oil FSO/FPSO; Service ships; Seismicsurvey, geology and underground works; Installation, operation and maintenance of marineworks; Port services and services providing technical manpower, protection and oil and gasequipment, hotel services, offices…

5 Overview of PetroVietNam Chemical and Services Joint Stock Corporation (PVC):

PetroVietnam Chemicals and Services Corporation was established on March 8, 1990, by the General Department of Petroleum (now the Vietnam National Oil and Gas Group) On November 15, 2007, the company's shares were officially traded on Hanoi Stock Exchange (HNX) with the stock ticker PVC PetroVietnam Chemicals and Services Corporation is a provider of chemical application and exclusive leasing services for Vietnam's oil and gas enterprises, simultaneously leading in providing technical services to enterprises inside and outside the oil and gas industry The country's primary markets for PVC operations are in Hanoi, Hai Phong, Quang Ngai, Ho Chi Minh City, and Ba Ria - Vung Tau The company's export markets are concentrated in the Asia-Pacific region, the Middle East, and Central America.

The Vietnam Oil and Gas Pipe Coating Joint Stock Company is a division of the Vietnam Gas Corporation (PVGas), therefore ever since it was founded, the Board of Directors has given it close attention, support, and guidance Corporation, the assistance and efficient assistance of the Corporation's member units, as well as the industry units of the Vietnam National Oil and Gas Group Despite being recently founded, the company already has advantages due to ties with the Oil and Gas Group and other organizations in the oil and gas sector as well as a strong brand reputation

Investment in industrial, urban, and service complex development, exploitation, and building; investment in construction, utilization of infrastructure, leasing of buildings, factories, yards, andtools and equipment for the construction industry; investment in constructing, mechanical manufacturing facilities supplying the petrochemical industry, cement plants, and building material production; Office, grocery store, and rental home For domestic and international projects, logistical assistance and the import of materials, equipment, and items are available urban business services; advice on investing in oil and gas projects; business services in industrial parks.

II Ratio Analysis:

1 Current ratio ( working capital ratio):

The current ratio, also known as the working capital ratio, measures the capability of a businessto meet its short-term obligations that are due within a year The ratio considers the weight oftotal current assets versus total current liabilities It indicates the financial health of a companyand how it can maximize the liquidity of its current assets to settle debt and payables Thecurrent ratio formula (below) can be used to easily measure a company’s liquidity.

For PVD:

Current asset 5,704,833,042,080 5,107,391,677,605 5,428,797,240,960

2,862,262,704,800 2,798,539,771,775 3,030,445,254,960

IN 2019

Ø For each VNĐ of current liability, PVD company has 1.99 VNĐ of its current assets toconvert into cash to pay current liabilities.

For PVC:

Current asset 1,528,821,338,461 1,451,120,652,684 1,607,756,181,917Current liabilities 888,045,440,378 814,956,602,198 976,481,251,603

short-Through the chart above, we can see that the current ratio of PVB is many times higher than that of companies in the same industry However, this is not a good sign because it reflects that the business is not using assets effectively.

For the remaining three companies, the current ratio is stable compared to the industry but PVD's index shows that the company is more likely to repay all of its debts than the other two

companies However, if it is about the effective use of assets, the PVS company is the best because from 2020 to 2021, even though the assets will decrease due to fear of the impact of the covid epidemic on the oil and gas industry, the company's debt will decrease from

9,802,865,550,700 down to 8,735,376,980,582 As for PVC, the index is stable, but in 2021, debtwill account for more than half of assets.

2 Quick ratio:

Quick ratio or Acid-test ratio is another ratio which is widely used by investors, measures acompany's capacity to pay its current liabilities without needing to sell its inventory In this ratio,inventory is not included in the formula, as it is difficult to convert into cash quickly.

For PVD:

Quick assets 4,869,385,137,280 4,148,453,219,660 4,670,961,095,040

2,862,262,704,800 2,798,539,771,775 3,030,445,254,960

The quick ratio demonstrates the company's capacity to pay down short-term creditors rightaway using near-cash assets (assets that can be quickly turned into cash) It is clear thatbusinesses have a very high ability to make quick payments because, on average, their quickratios are high and all three years are above 1.4

For PVS:

Quick asset 14,714,845,479,582 14,491,842,555,822 13,292,284,499,498

Current liabilities

8,994,685,972,883 9,802,865,550,700 8,735,376,980,582

Quick ratio 1.64 1.48 1.52

The quick ratio of PVS in recent years is more than 1.0 which means that the company hasenough money to pay its bills and continue operating Further analysis, the quick ratio is smallerthan the current ratio, it shows that short-term assets of PVS depend heavily on inventories.For PVC:

Quick asset 1,191,524,352,491 1,287,344,573,741 1,607,499,235,557Current liabilities 888,045,440,378 814,956,602,198 976,481,251,603

According to the data in the table, PVC's quick ratio in recent years is greater than 1.0 which means the company has enough money to pay the bills and continue operating In addition, this index also gradually increased from 1.34 to 1.64 in 3 years 2019 - 2021.

For PVB:

Quick asset 516,533,775,424 366,960,873,69

1 250,251,324,130Current

liabilities 393,800,226,791 145,048,609,508 71,690,795,478

The quick ratio shows the company's ability to use near-cash assets to immediately pay off term creditors (assets that can be quickly turned into cash) Looking at the data table, we can see that PVB's quick ratio is quite high and gradually increased over 3 years.

short-All 4 companies have quick ratios for all 3 years In 2019, PVB had the lowest payment ratio, but in 2020 and 2021, this ratio increased significantly and was the highest in 2 years 2020 and 2021 PVC, PVD, PVS this ratio over the past 3 years is quite balanced and not much has changed But in general, businesses are completely capable of paying short-term debts immediately.

3 Debt to asset ratio:

Total Debt / Total Assets

For PVD:

Total Debt 6,923,265,527,120 6,814,172,858,945 6,929,622,017,040Total Assets 20,891,727,392,240 20,856,190,205,660 20,761,202,484,160

The company has kept its steady over the years showing that the company has more assets than liabilities and can pay off its obligations by selling assets if needed.

For PVS:

Total Debt 13,219,703,953,202 13,395,159,975,310 12,310,655,145,782Total Assets 36,003,967,532.544 26,279,277,126,937 24,844,977,063,351

The Company's debt-to-asset ratio, which will fluctuate in 2020 and 2021, has increased sharply However, a relatively good debt-to-assets ratio.

For PVC:

Total debt 900,730,283,846 849,839,532,411 1,009,265,275,280Total asset 1,774,756,036,720 1,673,538,992,339 1,810,746,470,860Debt to asset

2020 and 2021, the enterprise's autonomy is high because the debt to asset ratio is quite low compared with this ratio in 2019 In 2019, this ratio is 0.48 which means that 48% of the company's assets are financed by creditors, the remaining 62% by equity.

PVD has kept its steady over the years showing that the company has more assets than liabilities and can pay off its obligations by selling assets if needed PVS's debt-to-asset ratio, which will fluctuate in 2020 and 2021, has increased sharply However, a relatively good debt-to-assets ratioshows that the company has more assets than liabilities, payments can pay off Both PVD and PVS have a good ratio of being able to repay the debt in the future.

The ratio of PVC is generally stable but debt is increasing close to assets, so it will not be able to repay the debt in the future if it continues to increase and the company may go bankrupt Although the debt to assets ratio of PVB decreased year by year, it was still able to repay the debt because the debt decreased significantly.

After 3 years of PVD, the index is not high and is in the process of going down, thereby affectingthe future development of the Company PVS in 3 years has an upward trend of improvement, especially in 2021 The ratio of profit margin between the two companies we see that for PVS, the net profit margin is more stable and better than PVD.

PVB in 2019 to 2020 decreased slightly but by 2021, it will decrease sharply from 9.57% to 1.49% Net sales decreased a lot, net incomes also differed from net sales about 66 billion, showing that this company is not working efficiently

5 Gross margin ratio (%) :

( Net Sales - Cost of good sold ) / Net sales

For PVD:

Gross margin 450,169,604,256 328,794,993,294 371,240,446,365Net sales 4,368,072,890,952 5,228,638,834,323 3,995,471,964,670

The gross margin from 2019 to 2020 decreased quite a lot But from 2020 to 2021, the gross margin increases a bit Although the index in 2020 is only 6.3% due to the covid epidemic, 2020has a much higher net sales than 2021.

For PVS:

Gross margin 897,514,876,278 778,165,980,122 775,652,351,091Net sales 16,968,487,079,402 20,179,913,749,667 14,198,441,443,708

Gross margin gradually decreased over the year Gross margin in 2019 to 2020 increased, in 2021 decreased But a higher gross margin ratio in 2021 shows that the company is recovering gradually from the covid pandemic in 2020.

For PVC:

Net sales 2,265,018,088,993 2,178,704,787,315 2,760,259,591,703Cost of goods sold 2,046,376,023,525 1,992,377,348,652 2,578,953,875,169

PVC witnesses a strong decrease over 3 years, however, net sales has increased significantly, higher than 2020, shown that the net sales are become better

For PVB:

Net sales 382,615,410,166 695,138,281,566 38,785,140,179Cost of good sold 300,888,810,200 585,003,750,468 57,468,336,455

In 3 years 2019, 2020, 2021, we can see that the gross margin ratio of 2019 is the highest, so 2019 is the year with the highest interest rate of enterprises In 2020, due to the impact of covid 19, corporate interest rates were reduced and gross margin ratio decreased by nearly 6% compared to the previous year In 2021, the gross margin ratio drops sharply below 0%, showing that the company cannot control costs.

* PVB and PVC can both see that the two companies have a marked reduction rate, especially PVB has a negative index, showing that business after the pandemic has become even more difficult The remaining 2 companies, although decreasing, had volatile and stable indexes, but only at a slight level

Cost of goods sold 2,046,376,023,525 1,992,377,348,652 2,578,953,875,169

Average inventory 302,838,960,853 232,594,404,710 246,961,142,114Inventory

Over the past 3 years, the inventory turnover index increased from 6.8 to 10.4%, which shows that the inventory is not too stagnant because the company has too little inventory.

For PVB:

2019 2020 2021Cost of good sold 300,888,810,200 585,003,750,468 57,468,336,455Average inventory 192,115,182,342 130,987,897,340 257,630,790,688

Looking at the Inventory turnover index over the past 3 years, we can see that in 2019 and 2021, the company's sales time is fast, the inventory volume is negligible But in 2020, due to the impact of the covid 19 epidemic, the inventory is the most and the consumption time is also slow.

Through the comparison, we can see that the stability and inventory management, the main business activities of the four current and future units have a big difference For PVD, although the efficiency is not high it is relatively stable due to business characteristics, for PVS, it is clear that the main business activities, the inventory turnover trend has decreased markedly over the years, although currently using better inventory turnover than PVD PVB's inventory turnover in 2019 and 2020 is not too low, but in 2021, this company's inventory turnover is extremely low, it shows that the company has low revenue and the company has too much goods relative to real demand PVC's inventory turnover tends to increase over the years, proving that this business is consuming products quickly and the demand for such goods is quite large This indicator in PVC is the most positive.

7 Days sale uncollected:

(Account Receivable / Net Sales) x 365

For PVD:

2019 2020 2021Account receivable 1,600,090,277,840 861,176,144,250 1,311,560,013,440

Net sales 4,368,072,890,952 5,228,638,834,323 3,995,471,964,670

Stability, sometimes increasing the number of uncollected day sales will affect the company's cash flow Account receivable for about one-third of net sales in 2021, showing that the company's debt to customers is increasing

For PVS:

Account receivable 2,884,571,159,669 5,073,158,592,886 4,005,773,767,806Net sales 16,968,487,079,402 20,179,913,749,667 14,198,441,443,708

Over the past 3 years, the uncollected day sale index has increased a lot Initially in 2019 AC accounted for 1/8 of net sales, 2020 accounted for 1/4, 2021 accounted for more than 1/3 Account receivable for net sales increasing day by day

For PVC:

Account receivable 869,893,360,649 843,320,612,895 915,919,731,210Net sales 2,265,018,088,993 2,178,704,787,315 2,760,259,591,703

Over three years, the decrease in the day sales uncollected index indicates that the company is fully collecting debt.

For PVB:

2019 2020 2021Account receivable 405,778,525,585 219,353,620,954 39,176,137,393

Net sales 382,615,410,166 695,138,281,566 38,785,140,179

Days sale uncollected in 2019 is the highest showing that the company sells a lot of goods because the account receivable was 405,778,525,585 but has a poor collection process In 2020, days sales uncollected decreased sharply to 115.17 showing that the company can collect money from customers sooner and use the money for other activities In 2021, this index will increase sharply.

8 Accounts receivable turnover:

Net sales/Average account receivable

For PVD:

Net sales 4,368,072,890,952 5,228,638,834,323 3,995,471,964,670