Local knowledge pays dividends

However, PetroVietnam Drilling and Well Services (PVD) has taken a tumble.

PGS announced this morning its net profit for the first six months of 2011 sharply rose by 374.3 per cent year-on-year to VND142.15 billion ($6.9 million). Q2’s profit stood at VND103.79 billion ($5 million), up 630 per cent against last year’s corresponding period.

PGS’s strong profits mainly come from its core business, while financial activities’ revenue declined. Its total revenue stood at VND1.46 trillion ($70.5 million), up 73 per cent.

Earnings per share of the parent company reached VND4,155.

Beside PGS, the leading steel firm Hoa Phat Group (HPG) posted a robust business performance.

The parent company’s net profit within Q2 was up 33.36 per cent to VND455.74 billion ($22 million), helped by net revenue rising to VND4.57 trillion ($220.8 million).

Its gross profit from core business of the group also strongly advanced 47.14 per cent to VND805.2 billion ($19.57 million), mainly contributing to its good results. Financial revenue made up an insignificant part. The group’s after-tax profit is of VND1.03 trillion ($49.8 million).

HPG’s earning per share for the first half year thus stands at VND3,090.

In contrast with those two firms, PVD’s financial business significantly rose. This sector produces the oil and gas services firm VND176.75 billion ($8.5 million) in revenue, up 234 per cent against last year’s corresponding period.

Its core business’ gross profit shed some 18 per cent despite a rise of 11.5 per cent in gross revenue, due to high capital costs.

The parent company said its Q2 profit reached VND271.21 billion ($13.1 million), down 8 per cent year-on-year. That for the first half year added 6.13 per cent to VND460.64 billion ($22.25 million).