[VELESTO ENERGY BERHAD：这集团拥有的七个自升式钻井平台中有六个正在运作，而其中一个因为最近获得的长期合同而正准备动员，预计将于2019年9月初开始]

2Q19 vs 2Q18:
截至2019年6月30日止第二季度的集团收入为1.571亿令吉，高于2018年同季的1.118亿令吉，增加4530万令吉或40.5％。这主要是由于钻井服务机利用率提高和平均charter率提高，钻井服务部门的表现有所改善。这集团于二零一九年第二季录得1,170万令吉的税前利润，而二零一八年同季录得的税前亏损为2,470万令吉，显着改善了3640万令吉，主要由于收入增加。

钻井服务部门：
在2019年第二季度，钻井服务部门为这集团贡献收入1.545亿令吉或98.4％，较同期录得的1.075亿令吉增加4,700万令吉或43.7％。这是因为平均自升式钻井平台利用率高达74％，而2018年同期为59％。此外，他们的液压修井机（HWU）也因GAIT 1的开始而因此收入增加。钻井服务部门在2019年第二季度的税前利润为1,720万令吉，而2018年同期的亏损则为1520万令吉。

油田服务部门：
油田服务部门报告2019年第二季度的税前利润为RM30万，而2018年同期的亏损为230万令吉，显着改善了260万令吉。这是由于在2018年底完成的亏损油田公司的运作调整。

其他部门：
其他部门录得较低的税前亏损为590万令吉，而去年本期间亏损为710万令吉，主要由于外汇收益及间接费用减少所致。

YTD：
截至2019年6月30日止六个月的集团收入为2.841亿令吉，高于2018年同期的2.336亿令吉，因为钻井平台机利用率上升及平均charter率提高，增加5,050万令吉或21.6％。与收入增加一致，这集团于2019年6月30日止六个月期间的税前亏损为790万令吉，而2018年同期为1,970万令吉，较上年同期改善1,180万令吉或59.9％。

钻井服务部门：
于二零一九年的六个月期间，钻井服务部门为这集团贡献2.793亿令吉或98.3％的总收入，较2018同期的二亿2560万令吉增加5370万令吉或23.8％。这是由于自升式钻井平台的利用率提高到70％，而2018年同期为62％。此外，他们的HWU也在2019年开始实施GAIT 1业务的六个月中增加了收入。

因此，钻井服务部门在截至2019年6月30日的六个月期间产生的税前利润为430万令吉，而2018年同期的亏损为2720万令吉，相当于改善了3150万令吉或115.8％。由于努力控制成本，较低的运营成本也有助于减少本期间的损失。

油田服务部门：
油田服务部门报告2019年6个月的税前利润为21,000令吉，而2018年同期的税前亏损为330万令吉，显着改善了330万令吉。

其他部门：
其他部门的税前亏损为1,220万令吉，而去年税前利润则为1,080万令吉。

QoQ：
2019年第二季度的集团收入为1.571亿令吉，高于2019年第一季度的1.27亿令吉，增加了3,010万令吉或23.7％。本季度收入增加的原因是自升式钻井平台的利用率高达74％，而上一季度为66％。此外，由于GAIT 1业务的开始，他们的HWU在2019年第二季度贡献了更高的收入。

因此，这集团于2019年第二季度的税前利润为1,170万令吉，而上一季度的税前亏损为1,960万令吉。由于钻机利用率提高，钻井服务部门的盈利能力出现转机。

前景：
钻井服务部门：
石油输出国组织（“欧佩克”）和非欧佩克主要生产国，伊朗和委内瑞拉的制裁以及一些主要生产国的生产能力下降为石油和天然气勘探和制作公司的持续投资奠定了基础。

钻探活动继续增加，在本地和全球范围内更多的合同被招标和授予。目前，这集团拥有的七个自升式钻井平台中有六个正在运作，而其中一个因为最近获得的长期合同而正准备动员，预计将于2019年9月初开始。随着新合同的开始和现有合同的延长，预计钻井平台的使用量将在下半年大幅增加，其中一些预计将在2020年及以后继续使用。

液压修井机的需求也在改善，集团的两个液压修井机已经开始运作，一些招标正在进行中。自升式钻井平台和液压修井机的需求增加预计将使这集团受益，成为具有强大国内和区域业绩记录的主要参与者。根据最近授予的合同，还可以看到time charter率和合同期限的改善。

油田服务部门：
虽然业务前景有所改善，但这集团将持续评估该部门下唯一剩余的次要子公司的可行性。

集团：
基于这集团下半年资产的预期更高利用率和time charter率，董事会预计2019年这集团的财务表现将有所改善。
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James Ng Stock Pick Performance:
Since Recommended Return:

a) FRONTKN (FRONTKEN CORP BHD), recommended on 12 Aug 18, initial price was RM0.715, rose to RM1.61 (dividend RM0.015) in 1 year 22 days, total return is 127.3%

b) KKB (KKB ENGINEERING BHD), recommended on 1 Jul 18, initial price was RM0.795, rose to RM1.40 (dividend RM0.04) in 1 year 2 months 2 days, total return is 81.1%

c) GBGAQRS (GABUNGAN AQRS BHD), recommended on 16 Dec 18, initial price was RM0.80, rose to RM1.22 in 8 months 18 days, total return is 52.5%

d) ELKDESA (ELK-DESA RESOURCES BHD), recommended on 18 Nov 18, initial price was RM1.27, rose to RM1.67 (dividend RM0.07) in 9 months 16 days, total return is 37%

e) PWROOT (POWER ROOT BHD), recommended on 7 Oct 18, initial price was RM1.59, rose to RM2.05 (dividends RM0.063) in 10 months 27 days, total return is 32.9%

f) BAUTO (BERMAZ AUTO BHD), recommended on 14 Oct 18, initial price was RM1.89, rose to RM2.28 (dividend RM0.1875) in 10 months 20 days, total return is 30.6%

g) KGB (KELINGTON GROUP BHD), recommended on 23 Dec 18, initial price was RM0.965, rose to RM1.25 (dividend RM0.008) in 8 months 11 days, total return is 30.4%

h) PESTECH (PESTECH INTERNATIONAL BHD), recommended on 2 Jun 19, initial price was RM1.04, rose to RM1.34 in 2 months 30 days, total return is 28.8%

i) JAKS (JAKS RESOURCES BHD), recommended on 20 Jan 19, initial price was RM0.575, rose to RM0.73 in 7 months 14 days, total return is 27%

j) MI (MI TECHNOVATION BERHAD), recommended on 2 Jun 19, initial price was RM1.67, rose to RM1.88 (dividend RM0.01) in 3 months, total return is 13.2%

k) SERBADK (SERBA DINAMIK HOLDINGS BHD), recommended on 29 Jul 18, initial price was RM3.96, rose to RM4.39 (dividends RM0.084) in 1 Year 1 month 5 days, total return is 13%

l) BJFOOD (BERJAYA FOOD BHD), recommended on 30 Sep 18, initial price was RM1.43, rose to RM1.51 (dividends RM0.04) in 11 months 3 days, total return is 8.4%

我希望将我的策略分享给读者，希望他们在阅读后能够表现出色。我正在使用基本面分析（Fundamental Analysis）：

预计公司每年的增长率必须> 14％

我想说服读者学习基本面分析FA以便能从股市赚钱。

我为想从马来西亚股票市场赚钱的读者提供STOCK PICK服务。想订阅我的邮件以从股票市场获取良好回报的人，可以通过jamesngshare@gmail.com 或我的FB页面与我联系。

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有兴趣的朋友，可以电邮或PM FB page联络我
email：jamesngshare@gmail.com
电话/Whatsapp : 011 - 15852043

Facebook Group: https://www.facebook.com/groups/jamesinvesting

这个是我的TELEGRAM Group链接，大家可以在这个Group获知何时做Fb live: https://t.me/joinchat/LhwHNhdU1fDgxrSafTrTiw

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这个分享纯属讨论以及领域的分析，买或卖自负。请Like和Share这个post。最终决定永远是你的，谢谢。

James Ng
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[VELESTO ENERGY BERHAD: six out of the seven jack-up drilling rigs owned by the Group are working while one is being prepared to be mobilised for the recently awarded long term contracts, expected to commence in early September 2019]

2Q19 vs 2Q18:
Group revenue of RM157.1 million for the second quarter ended 30th June 2019 was higher than the RM111.8 million registered in the same quarter of 2018, an increase of RM45.3 million or 40.5%. It was mainly due to improved performance of the Drilling Services segment as a result of higher utilisation of rigs and average charter rate. The Group recorded a profit before taxation of RM11.7 million in the second quarter of 2019 against a loss before taxation of RM24.7 million recorded in the same quarter of 2018, significant improvement of RM36.4 million mainly due to higher revenue.

Drilling Services Segment:
In the second quarter of 2019, the Drilling Services segment contributed revenue of RM154.5 million or 98.4% of the total revenue for the Group, an increase of RM47.0 million or 43.7% from the RM107.5 million recorded in the same quarter of 2018. This was due to higher average jack-up rig utilisation of 74% as compared to 59% in the same period of 2018. In addition, their Hydraulic Workover Unit (HWU) also recorded higher revenue arising from the commencement of GAIT 1 operation in the second quarter of 2019. Consequently, Drilling Services segment recorded a profit before taxation of RM17.2 million in the second quarter of 2019 compared to a loss of RM15.2 million reported in the same quarter of 2018.

Oilfield Services Segment:
The Oilfield Services segment reported a marginal profit before taxation of RM0.3 million in the second quarter of 2019 as compared to RM2.3 million loss recorded in the same quarter of 2018, significant improvement of RM2.6 million. This was due to the rationalisation exercise of the loss-making oilfield companies that was completed at the end of 2018.

Others Segment:
Others segment recorded a lower loss before taxation of RM5.9 million as compared to loss of RM7.1 million mainly due to forex gain and lower overhead expenses during the current period.

YTD:
Group revenue of RM284.1 million for the six months ended 30th June 2019 was higher than the RM233.6 million registered in the same period of 2018, an increase of RM50.5 million or 21.6% as a result of higher rigs utilisation and average charter rate. In line with higher revenue, the Group posted a lower loss before tax of RM7.9 million for the six-month period ended 30th June 2019 against the RM19.7 million recorded in the same period of 2018, an improvement of RM11.8 million or 59.9%.

Drilling Services Segment:
For the six-month period of 2019, the Drilling Services segment contributed revenue of RM279.3 million or 98.3% of the total revenue for the Group, an increase of RM53.7 million or 23.8% from the RM225.6 million recorded in the same period of 2018. This was due to higher jack-up rigs utilisation of 70% as compared to 62% in the same period of 2018. In addition, their HWU also contributed to higher revenue for the six months in 2019 following from the commencement of GAIT 1 operations in the second quarter in 2019.

As a result, the Drilling Services segment incurred a profit before tax of RM4.3 million for the six-month period ended 30th June 2019 compared to the loss of RM27.2 million reported in the same period of 2018, an improvement of RM31.5 million or 115.8%. Lower operating cost also contributed to the lower loss during the current period as a result of their efforts to contain cost.

Oilfield Services Segment:
The Oilfield Services segment reported a minimal profit before taxation of RM21,000 in the six-month of 2019 as compared to RM3.3 million loss before taxation recorded in the same period of 2018, significant improvement of RM3.3 million.

Others Segment:
Others segment recorded loss before taxation of RM12.2 million as compared to profit before taxation of RM10.8 million.

QoQ:
Group revenue of RM157.1 million for the second quarter of 2019 was higher than the RM127.0 million achieved in the first quarter of 2019, an increase of RM30.1 million or 23.7%. Higher revenue in the current quarter was due to higher jack-up rigs’ utilisation of 74% as compared to 66% in the previous quarter. In addition, their HWU contributed higher revenue in second quarter 2019 due to the commencement of GAIT 1 operations.

As a result, the Group posted a profit before taxation of RM11.7 million in the second quarter of 2019 compared to a loss before taxation of RM19.6 million reported in the previous quarter. Drilling Services segment recorded a turnaround to profitability as a result of higher rigs utilisation.

Prospects:
Drilling Services Segment:
The continued production quota by Organisation of the Petroleum Exporting Countries (“OPEC”) and non-OPEC major producers, the Iran and Venezuela sanctions and the declining production capability of some of the major producers provided the basis for continued investment by oil and gas exploration and production companies.

Drilling activities have continued to increase with more contracts being tendered out and awarded, both locally and globally. At present, six out of the seven jack-up drilling rigs owned by the Group are working while one is being prepared to be mobilised for the recently awarded long term contracts, expected to commence in early September 2019. With the commencement of the new contracts and extension of existing contracts, utilisation of the rigs is expected to increase significantly in the second half of the year, with a number of them expected to continue working into 2020 and beyond.

The demand for hydraulic workover units is also improving with two of the Group’s units are already working and a number of tenders are in progress. The increased demand in both jack-up drilling rigs and hydraulic workover units is expected to benefit the Group, being the main player with strong domestic and regional track records. Improvements in time charter rates and contract durations are also seen based on recently awarded contracts.

Oilfield Services Segment:
While the business outlook has shown some improvement, the Group will continuously evaluate the viability of the only remaining minor subsidiary operating under this segment.

Group:
Based on the expected higher utilisation and time charter rates for the Group’s assets in the second half of the year, the Board expects an improved financial performance for the Group in 2019.
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I wish to share my strategy to readers, hope that they can perform well after reading this. I am using Fundamental Analysis:

the forecasted growth of a company must > 14% per year

I wish to convince readers to learn FA in order to make money from stock market.

I am providing STOCK PICK SERVICE for readers who want to make money from Malaysian stock market. Those who want to subscribe to my mailing list to achieve a good return from stock market, you can contact me at jamesngshare@gmail.com or PM me in my FB page.

This sharing is purely a discussion and analysis of the sector, buying or selling at your own risk. Please Like and Share this post. Final decision is always yours, thank you.

James Ng