Should be separate.

Syiok tgk naysayers barking..😂🤣😆

😂🤣😆 layan jer.

Still unclear what PNB's next move is. 

Velesto deserved 0.30 and above. Many institutions sell ready. Need PNB or other big guys to step in. 

PM will announce it soon, sources said...maybe during the 2025 budget presentation. Hopefully win-win situation for both parties. 

Sarawak premier Abang Johari Openg has revealed that a solution has been reached over the dispute between Sarawak and Petronas over the rights to oil and gas (O&G) resources in and around the state, with Prime Minister Anwar Ibrahim set to announce it soon.

Howtha Singh...

No people trust abg. Who is no people and how many of them?
Pakai tembak jer.

Buy lah, apa mahu takut. Directors buying mah under SIS. They know better than us about the future of this company.

https://www.thestar.com.my/business/business-news/2024/12/09/improved-earnings-visibility-forecast-for-velesto

Very rare Maybank gives credit to Velesto. 

Morgan Stanley Raises Brent Oil Forecast for Late 2025 After OPEC+ Move https://oilprice.com/Energy/Energy-General/Morgan-Stanley-Raises-Brent-Oil-Forecast-for-Late-2025-After-OPEC-Move.html

Yes. Then buy again.

I think TA is one of the lousy research centers. They did not fully digest the true story. Naga 8 was not suspended due to Velesto client cancelling the order. Actual Naga 8 completed drilling work in advance, or, in a simple form of words, we can say they completed it before the actual due/agreement date. The contract for Naga 8 was issued on 1st November 2023, and the commencing date is on 19 April 2024 until 18 October 2025 (1 year 6 months), but the Naga 8 crew completed the extraction work within 8 months. That means they are already 11 months ahead. This will give an opportunity to send Naga 8 for a special SPS survey. The contract amount is USD 74 million. They will receive the same amount even if they drag it until 18 October 2025...which is better, to complete the job quickly with efficiency and receive the full payment or drag the drilling job slowly, whereby it will swallow their operation cost?

I don't know how TA does the analysis... shop lot IB.

Hopefully.

Mavisdrac, the below article might give you some clue either to buy or not. Happy trading.


https://www.thestar.com.my/business/business-news/2024/12/04/correction-in-og-counters-presents-buying-opportunity

mavisdrac

Macgyver111

so should i buy now or not.

Sorry, Mavisdrac, nobody dares to say that. Even all IB previously said TP 0.30 but now change topic. The stock market is unpredictable. We can give you some rough ideas; the rest depends on you. Trade wisely. Do your own research before buying and selling. 

DJThong, this is your answer. Normally I don't reply to silly, brainless questions because I don't like debating or arguing... it's a waste of my time. 

When asked whether the dynamics between Petronas and the states of Sabah and Sarawak could further weigh on market outlook, Megat says, “A lot of statements are being made, but at the end of the day it is about the capex that will be rolled out in the next three years. Worried PETRONAS will reduce the capital expenditure for upstream. As for now, Velesto still relies on PETRONAS contracts. 

Here is a quick recap (Edge market interview Velesto CEO). 

1. Velesto sent Naga 5 for 55 days of a major maintenance program in Singapore. Naga 5 just returned back from 2 years of integrated drilling work for Hess Carigali, which was completed earlier than the actual assigned date (👏👏👏). Naga 5 will be assigned to a new project in mid-January 2025 onwards, as the group is in the final stage of securing a 2-year new contract. (expected new contract announcement soon). Naga 5 is free from any major maintenance work for another 5 years once this SPS is completed. 

2. For now, three of its jack-up rigs are under contracts that will run until February 2026. Of the remaining three, Naga 3 and Naga 8 are bidding for jobs from late 2025 onwards, as the two rigs are scheduled for dry docking in the first half of next year. The maintenance process, dubbed special periodical survey (SPS), will take about two to three months before the rig can resume operations. That means Naga 3 and 8 are out of a job from Jan to March. With two SPS to be conducted next year, Megat explains that each SPS capex amounts to between US$10 million (RM45 million) and US$20 million. And the capex would eat into Velesto’s earnings in FY2025. On top of that, there will be a vacuum in earnings when two rigs are dry-docking at the yard. 

3. Velesto has upgraded Naga 5 and Naga 6 to allow them to conduct multiple scopes of activities simultaneously, thus reducing charter days for clients. Naga 6 will also be installed with a robotic arm by 1Q2025, which automates some of the pipe installation process. The company is already exploring autonomous drilling.

4. CEO Megat Zariman said that Velesto is also looking at partnerships to expand into other rig-related projects such as decommissioning that will be a new revenue stream for the company.

5. The group is keeping a close watch on the upcoming Petronas Activity Outlook, which had previously indicated that up to 13 rigs would be required in 2026.

6. The average DCR in 2014 was high at US$151,000, against around US$115,000 currently. 

7. The past two industry downturns dragged Velesto, which was known as UMW Oil & Gas Corp Bhd then, into severe financial stress, mainly because its new rigs were unable to secure enough chartered contracts. Megat certainly does not want history to repeat itself by not expanding fleet size aggressively and reducing dependency on local contracts. At least the CEO is aware of the importance of securing a long-term contract and not solely depending on PETRONAS 👏👏👏👏.

Expected to see a massive rally only if Petronas wins the dispute. Institutional will rush in buying O&G counters, especially Petronas, and Velesto is not left behind.

I assumed this dispute was not between Petronas and Sarawak; it is between the federal power vs state power. Various analyses said that Malaysia could go bankrupt if Sarawak wins. We are affected as well, especially those who are contributing to EPF. EPF and Amanah are the biggest shareholders; moreover, 20% to 30% of federal government revenue comes from Petronas. 

All because of an ongoing dispute between Petronas and the Sarawak government for sole discretion of gas. Investors and institutions are skeptical about the future of Petronas; it will affect the Petronas revenue if Sarawak wins the court case. There are two different types of ordinance: Petronas follows the Petroleum Development Act, which was amended in 1974, while Sarawak refers to the All Mining Ordinance (OMO), which was established in 1954. The worst nightmare for the federal government is that they worry other states like Sabah, Kelantan, and Terengganu might follow Sarawak's footsteps. What do you all think? Who will win?

All depend on oil price. Trump taking over the White House in January 2025. Hopefully, OPEC+ will maintain the oil price in the 65 to 70 range. 

Think Velesto can weathered Trump's agenda: "Drill, baby, drill.". That is the main reason they implemented an onboard robotic system. Extract more oil with as low a cost as possible; even they can be profitable at the breakeven-point. 

Oil prices in the global market
The average break-even price for tight oil has been falling, reaching an average of $44 per barrel. The average break-even price for onshore Middle East production is around $30 per barrel, while the average break-even price for offshore deepwater production is around $43 per barrel. 

Seems like investors start to dump after the dividend payment..😀😃

That is why I said diversity is important if we are thinking of investing in this company for the long term and not because of dividend payments. Today they might pay a dividend; tomorrow they won't if their earnings are deteriorated. You all know that Velesto earns from the DCR, which comes from oil extraction for customers like Petronas and so on. While DCR depends on current crude oil price (which is in USD). If crude oil prices slide, then it will affect this company's performance. Another worry is Trump might bring down the oil price. This is what happened to UMW. The key point is to diversify their business for future growth and give confidence to the long-term investors. Anyway, let's wait for the quarterly announcement; it was supposed to be today, and where is the price heading after that? 


Blacksmith
I still don’t understand what is happening with this counter

Screener's monthly membership members are very satisfied, and they can synchronize the KLCI stock price for only RM5. Velesto - T.Cash 212.100; Total Debt 359.150; Debt to Cash 1.693; Debt to Equity 0.137

Volume is very low in early trading. Let's see in the second half; by then most of the investors already get insider info about quarterly performance.

Clearly, lowering the price is for SIS. BOD wants to collect cheap tickets before it takes off. Don't listen to the naysayers. 

Velesto has to diversify their business portfolio. They need to expand their business rather than just stick with oil extraction. They need to plan their future strategy carefully, aligned with global trends, perhaps venturing into renewable energy and kind of it; otherwise, they're left behind. PNB, as a major shareholder, is not proactive enough to bring forward this company to the next level... just a waste. 

Hahaha! Talking about God. There is one time when my guru suddenly asked me to describe God in the simplest way possible. I don't know how to describe or explain it, so I just said, "God is mankind's greatest discovery." Win-win! 😂🤣😂

Dia ada split disorder symptom...dual character 🤣😂🤣😂🤣

Aizo is still a good place to park our money for future earnings. Give Aizo some time to recover; you cannot expect this counter to recover overnight. The damage that previous management has done is huge and needs to be fixed gradually so you can see the profit. Don't ever listen to the naysayers, especially burung otak tiga suku...kaki spin kuat.

I know they're going to make a quarter loss; that's why I didn't give any comments on the quarter. It is still too early to predict on QTR, as they are still executing the project and earnings are not yet reflected in their financial report. Must wait till next year; then only earnings are visible. This is my opinions - Kalau blh sabar tunggu ler klu tak blh jual dan move on to other counters. 

😂🤣🤣😂🤣😂. Nanti burung kutuk balik sb qtr loss.

Perdana - net profit 74mil ++
Armada - net profit 211++
Velesto - net profit????


Wait next week...😂😂😂.

War in between Russia Ukraine heat up..

https://www.livemint.com/news/world/russia-fires-nuclear-capable-intercontinental-ballistic-missile-at-ukraine-for-first-time-what-is-icbm-11732184710303.html

I think there shouldn't be any impact in the upcoming financial report (3qtr). Please read the last paragraph of their recent announcement....

The loss of Velesto NAGA 7 was recovered from Hull & Machinery Insurers with recognition of the insurance claim of RM560.9 million as announced in the company’s quarterly results announcement on 28 February 2022. The cost of wreck removal is not expected to affect the group’s finances as covered by Protection & Indemnity Insurance taken by the group. Barring unforeseen circumstances, with the completion of the wreck removal activities, the company does not expect further significant financial or operational impacts arising from the removal activities.




The company extends gratitude to all parties involved, including the clients, contractors, insurance brokers & underwriters, and regulatory authorities, for their cooperation and support throughout the removal process.

Goodwill5, thanks. Rising in brent price due to Russia/Ukraine tension will further strengthen your theory + upcoming excellent qtr result next week.

1 rig only, where got 3 rigs. The management (Velesto) is supposed to send 3 rigs for a special periodic survey. In the 2nd quarter, 1 rig completed this survey. 3rd qtr 1 rig and 4th qtr another rig. If they send 3 rigs one short...koyak lah, how to supply oil for the Petronas contract?

Guys, here are the benefits from the rigs automation program, which is conducted by Velesto. Cost saving is tremendous if they really can execute it very well. Operation cost is the number one burden for most of the rig providers. (I do some research, feel free to read)

Benefits of automated handling robots for oil & gas drilling rigs.

1. Reduce accidents at the rig operation platform. Employee safety is most important, which needs to comply with HSSE regulations. Approximately 1,600 injuries and 18 fatalities were reported in 2014. Today it might increase more. 
2. Reduce high operation costs. Offshore workers need to be highly certified, which translates into substantial labor costs.
3. Transportation—highly skilled workers need to be transported to and from the platform by helicopter, which results in high transportation costs.
4. Time is valuable. Time needed until the first gas or oil is actually pumped. The shorter this time, the more profitable the drilling project will be. 
5. Prevent environmental impacts. To minimize the footprint of the operation, reduce the amount of energy needed and prevent accidents that might have a detrimental effect on the environment.
6. Reduce manual operations. As the automation systems are implemented, they will be replacing the manual workforce. Handling by robots is only a step towards lower operation.

Summary:
The system basically consists of a drill floor robot, robotic roughnecks, multi-size elevators, and robotic pipe handlers. It is designed to remove high-risk manual tasks from drilling platforms while adding a new level of speed, accuracy, and reliability to drilling operations.

PRESS RELEASE - TECHNOLOGY COLLABORATION: VELESTO, PETRONAS, AND NOV ON DRILLING RIG AUTOMATION SYSTEM AND ROBOTICS

2024-11-20 - 12:57 pm

Anyone here understand what this is all about? And why it is so important for a rig service company like Velesto.

Next week 3rd qtr announcement.

🤣🤣🤣😂😂. Syiok layan badut2

Tahu takpa... 😂😂😂🤣. I'm keep telling you guys don't listen to those naysayers. Kaki spin kuat. Jgn layan buat dek sje.

The potential merger between MISC and Bumi Armada is heating up. Petronas owns 51% of MISC's stake. Refer to the past news: PNB is willing to do the same if there is a good buyer. PNB also holds 13.25% of Bumi Armada shares. What's going to happen next, no one knows. 

As far as I know, Trump got mentioned that if he wins the election, USA will pull out of the Paris agreement. 

😂🤣😂 nice question.

https://www.thestar.com.my/business/business-news/2024/10/29/petronas-plans-significant-expansion-in-indonesia

JAKARTA: Malaysian national oil company Petroliam Nasional Bhd (PETRONAS) plans an “aggressive” expansion in Indonesia that will see it create a hub for its operations in East Java and invest in exploration in the country’s far-flung eastern regions, its Indonesia head says.

Indonesian President Prabowo Subianto’s government, which took office this month, has pledged to bolster energy development, aiming to reverse a decades-long decline in output by the former Organisation of the Petroleum Exporting Countries member.

https://www.upstreamonline.com/field-development/petronas-looking-to-build-on-its-thriving-business-offshore-indonesia/2-1-1727926


This will justify what SinGor mentioned earlier. Referring to this article, most probably, Velesto will divert their rigs to Indonesia off shore for an up-coming new contract, which is still under PETRONAS, but I guess PETRONAS will pay them much higher DCR...