PVT [MARKET PERFORM +7.9%] - Waiting for Nghi Son refinery to come online next year - Update
We maintain a MARKET PERFORM recommendation with total return of 7.9%. We forecast 2017 reported EPS to drop 14.6% YoY as a periodic maintenance at Dung Quat refinery and crude tanker dry-docking help lower the utilization of the tanker fleet. Nghi Son refinery plans to come onstream from Q1 2018, but it is unlikely to operate at full capacity until Q4 2018. We expect 2018 earnings to grow 10.1% YoY thanks to the initial crude transport volume from Nghi Son and no Dung Quat maintenance.