Vietnam’s oil and gas industry is experiencing a significant revival, attracting renewed interest from investors. Since mid-October, stocks in this sector have shown marked improvement. Key companies, including PV Drilling (PVD) and PetroVietnam Technical Services Corporation (PVS), have seen their share prices rise between 20 percent and 28 percent in just two weeks. Petrolimex (PLX) and PV Oil (OIL) also posted gains of 8 percent to 10 percent during the same period.
This positive trend follows the issuance of Government Resolution No. 66.6/2025/NQ-CP on October 28, which specifically addresses challenges in the oil and gas sector. The resolution grants PetroVietnam (PVN) the authority to oversee certain approvals related to oil and gas operations. This move is expected to streamline procedures, increase efficiency, and accelerate the implementation of important projects.
Financial Results Fuel Optimism for Future Growth
The sector’s third quarter financial results have reinforced investor optimism. According to data from FiinTrade, profits after tax for the oil and gas industry surged by an impressive 594.7 percent year-on-year. Binh Son Refining and Petrochemical JSC (BSR) reported a profit increase of 175.1 percent, while PLX soared by 441 percent, and PBS jumped by 73.3 percent.
In recent years, oil and gas stocks had lagged behind the broader market due to concerns over fluctuating oil prices and limited growth prospects. However, the latest financial performance indicators suggest a turnaround. Compared to other sectors that have already reached high valuations, oil and gas stocks now stand out as promising options for investors seeking value.
Currently, these stocks are trading at a median price-to-earnings (P/E) ratio between 18x and 27x. This represents a discount of 23 percent to 47 percent compared to their average valuation over the past five years. Such attractive valuations are drawing attention from both domestic and international investors.
Sector Outlook: Opportunities and Challenges Ahead
Looking forward, BIDV Securities (BSV) forecasts that the oil and gas sector will maintain its growth momentum into the fourth quarter of 2025. However, BSV cautions that future growth may come more from cost recoveries, asset sales, and currency gains rather than significant increases in core operational profits.
For 2026, BSC anticipates a divergence in performance among companies within the sector. Firms with strong backlogs and favorable contract terms—such as PVS and PV Drilling—are expected to continue growing steadily. In contrast, companies like PV Gas may encounter difficulties due to high profit bases from previous years and insufficient LNG supply to offset declining natural gas production.
PVS currently holds a backlog worth approximately US$2.5 billion, which includes major projects like Lô B – Ô Môn and Lạc Đà Vàng. The company is also making strategic moves into renewable energy, signaling a commitment to long-term growth beyond traditional oil and gas operations.
PV Drilling has secured contracts for its entire fleet until the end of 2026, with some agreements extending through 2028. The company is investing in a new $90 million jack-up rig scheduled for delivery by mid-2026, further strengthening its operational capacity.
Investment Potential Remains Strong Amid Global Uncertainties
Analysts at SSI Securities consider stocks such as PVD and PVS robust defensive choices because of their strong asset base and long-term contracts. Conversely, stocks that are more sensitive to changes in oil prices—like GAS and BSR—require closer observation due to ongoing global supply and demand uncertainties.
Despite these challenges, the outlook for Vietnamese oil and gas stocks remains positive overall. Long-term contracts combined with favorable market conditions are expected to support continued growth in this sector. As investor confidence strengthens further and market liquidity improves, Vietnam’s oil and gas industry is well-positioned to be a standout performer through the latter half of 2025.
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