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PVD [MARKET PERFORM -6.1%] - Still many headwinds to overcome - Update

We keep our target price relatively unchanged and maintain a MARKET PERFORM rating. We expect a net loss of USD22mn in 2018, mainly due to 1) a 5% drop of in the average jack-up day rate, 2) higher depreciation expenses from rising utilization rates and 3) an USD8mn provision for bad debt of PetroVietnam Exploration & Production (PVEP). This loss was larger than our previous forecast due to no abnormal profit from Science fund reversals.