Credit Rating Result

Hanoi, 25 May 2026 - VIS Rating has assigned a long-term issuer rating of A to Pacific Petroleum Transportation Joint Stock Company (PVP). The outlook for PVP's A issuer rating is stable. This is the first time VIS Rating has assigned a rating to PVP.
The rating presented in this announcement is effective from the date of the announcement and remains in effect unless and until it is superseded by a subsequent rating action. Please visit https://visrating.com/rating-results to obtain the latest update on the rating.

Rating rationale

The long-term issuer rating of A for PVP is underpinned by its Above-Average standalone credit profile, reflecting Very Strong profitability and efficiency, Above-Average leverage and coverage metrics, and an Average scale and business profile.
PVP is an oil and gas shipping company focused on transporting crude oil and refined products in both domestic and international markets using specialized vessels. As part of the PetroVietnam Transportation Corporation (PVT) ecosystem (64.9% ownership) and Vietnam National Oil and Energy Group (PVN), PVP plays a key role in the domestic oil and gas transportation value chain.
PVP generates revenue from (i) international tanker transportation, (ii) tanker sub-chartering, (iii) ship management services, (iv) floating storage and offloading (FSO) bareboat chartering, and (v) energy-related trading activities, including liquefied petroleum gas (LPG). PVP’s revenue increased from approximately VND 1.5 trillion to nearly VND 2.5 trillion over the past three years, reflecting an average scale relative to Vietnamese corporates. Management expects continued expansion over the next 2–3 years, supported by fleet growth and a higher contribution from international transportation.
We consider international tanker transportation to be PVP’s core business and primary earnings driver: it contributes about 65–75% of gross profit and should account for a larger share of revenue over the medium term. We assess the industry profile of tanker transportation as Average, reflecting moderate barriers to entry, high competition, and fragmentation. Sector earnings are highly sensitive to geopolitical tensions, shifting trade flows, as well as macroeconomic policies and global fleet supply–demand dynamics.
Amid continued shifts in oil trade routes, with longer voyage distances driven by global geopolitical developments, VIS Rating expects freight rates to remain above cycle averages in the near to medium-term. This trend will support profit margins for tanker operators, including PVP.
PVP’s owned transportation fleet currently comprises one Aframax crude oil tanker and two Mid-range (MR) oil/chemical tankers, operating across major trade routes spanning Asia, the Middle East, Europe, Africa, and the Americas. The addition of MR tankers since 2023 has diversified cargo segments and reduced reliance on crude oil transportation, which is more cyclical and exposed to oil price fluctuations than chemical shipping. This diversification strengthens earnings resilience and supports more stable operating performance.
PVP’s fleet remains modest in scale in the international market. Nonetheless, the company has gradually strengthened its capabilities and autonomy in technical management, crewing, safety, and operations, meeting stringent requirements from charterers, cargo owners, and port authorities. PVP applies international standards in technical, safety, and operational management, including Tanker Management and Self Assessment (TMSA) of Oil Companies International Marine Forum (OCIMF), enhancing operational quality and reinforcing its reputation with counterparties. Leveraging its track record and experience in international markets, PVP has established and expanded relationships with leading oil energy companies and oil traders, such as Vitol, Trafigura, Clearlake, Shell, PTT, PMI, and ENEOS, supporting high fleet utilization and improving revenue stability.
In the domestic market, PVP maintains a relatively stable revenue base from the bareboat charter of the FSO supporting upstream operations at the Dai Hung field, as well as from the commercial management of crude oil transport for PVT-owned and chartered vessels, which handle all domestic crude to Dung Quat Refinery. These activities generate stable cash flows, mitigating the volatility of international tanker markets and enhancing earnings stability.
PVP’s profitability is assessed as Very Strong. Its Earnings before interest, tax, and depreciation (EBITDA) margin has remained in the 30%–40% range over the past three years, supported by high fleet utilization driven by a flexible deployment strategy, proactive capture of favorable time charter rates in international markets, and effective cost control. Looking ahead, as international transportation increases its revenue share, margins are expected to remain solid but become more sensitive to freight rate movements than under the current mix.
In 2026–2027, PVP plans to expand its fleet to increase operating scale and strengthen its presence in international markets, with the addition of two Aframax crude oil tankers and two MR oil/chemical tankers, effectively doubling fleet size by 2027. Supported by this expansion, a favorable freight-rate environment over the next 12–18 months, we project revenue to grow by about 20% in 2026 and 11% in 2027, with EBITDA margins maintained at around 35%.
We assess PVP’s leverage and coverage profile as Above Average, reflecting its prudent financial management.
Over the past three years, PVP has kept leverage modest, with debt consistently below 50% of equity and Debt/EBITDA below 1.5x, lower than industry averages. This prudent financial management supports the company’s ability to sustain a solid financial position and stable profitability through industry cycles.
With planned fleet investments in 2026–2027, leverage is expected to increase. Debt/EBITDA is projected to increase from 1.1x in 2025 to an average of around 2.6x over the next 12–18 months, before gradually declining from 2028 as the new vessels enter stable commercial operations. Interest coverage – defined as Earnings before interest and tax (EBIT)/interest expense – is expected to weaken to around 2.4x in 2027 from 7.8x in 2026. CFO/debt will similarly weaken to around 30%.
We assess liquidity risk over the next 12–18 months as low, supported by sizeable cash balances, solid operating cash flow, and a conservative funding structure. At the end of 2025, unrestricted cash and short-term deposits totaled VND 1.3 trillion (about 42% of total assets) and nearly doubled total debt. With no material near-term debt maturities, we expect liquidity to remain adequate without reliance on external refinancing.
As part of our rating analysis, we assess the likelihood that issuers will benefit from extraordinary external support in times of need, such as from related parties or the government. We do not incorporate such extraordinary support into PVP’s rating, as the company operates on a commercial basis, maintains operational independence, and does not hold a critical policy role in the economy.

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