Looks it is possible for this company to hit 1B for FY20. This company has not hit 1B for a long time.

Sales has increased despite all the doom and gloom that agents can't meet client due to social distancing. Based on what i hear from MLM agents, many people are buying immune boosting supplements now. Unfortunately, profit is dented by the exchange rate. Hope the hedged rate will be renegotiated.

If you think oil price below USD30 is just a temporary event, you can buy this share, if you think oil price is going to be stuck below USD30 for a long time, then don't buy.

Why sell it if it is investment grade? Hmmm ...

Me too, I also think this share will rise one day. Please have patience to wait or please pass down the shares to your next of kin for them to continue the wait for you. Those who bought at 30 sen thinking it was low when it corrected from 40 sen, if you think this share will go up, you can put in more money to average down and continue the wait.

Even if Petronas has a national duty to continue producing oil, I doubt Petronas has the capacity to give contracts for all the 7 rigs owned by Velesto. Even if Petronas wants to do so, it will be at a very low day rate that Velesto needs to match for Petronas to breakeven based on current oil price.

Next thing to check with the management, whether the existing long term contracts will be cancelled or made idle at zero rate. Please ask in the next AGM. Although this company has restructured its debt, it still has debt nonetheless. Maybe another round of restructuring perhaps?

It's hard for offshore producers to breakeven if oil price is below USD30.

With this covid19, this company should benefit but not sure if they have enough stock to sell and able to deliver to customers quickly.

Waiting for that someone to say "be greedy when everyone is fearful".

Best time to buy, if you still have bullet now.

This company borrows in USD.

ESOS coming soon. Will the price be pushed down so that the ESOS will get a lower exercise price fixed?

Day rate now improved slightly to USD80k but still lower than what was awarded to Perisai.

This is like the bottom but slow slow wait ler. That warrant exercise price is a big resistance.

It doesn't take a genius to realise that they are listed in Malaysia not for funding purposes because they are cash rich. It's not like they are very hard up for investors' money. Take note that Amway is not listed anywhere in the world apart from Malaysia so do appreciate this privilege.

Destinations more than 4 hours will be under AAX instead of AA. I have booked some flights of more than 4 hours before and noted that AAX price isn't really a lot more cheaper compared to other full service carrier. If' it's only 10% cheaper, I will rather go for full service carrier. So this long haul flight is not easy to compete. In addition, there are many national carriers that are subsidized and can afford to provide competitive air ticket price.

It's funny to think that Amway is so hard up for that registration fee. That small amount of fee certainly will not contribute significantly to their RM900m+ annual turnover. Their products are expensive only if you compare to what you normally find in the hypermarket. If you compare to other MLMs products, the price is about the same or even cheaper in some cases.

I went to Yinson agm and the management was claiming it was so easy to get contract for FPSO. There was one contract where they were the single bidder so not sure what is the difficulty for Armada. Good shares are not cheap. When Velesto dropped below RM1, Yinson was RM3 and naturally it was low risk to buy Velesto instead of Yinson. Just look at Yinson price today.

Petronas helping a foreign company to stay afloat? I am speechless. So when will Petronas help local companies? Or is there really "help" as fantasized by some people?

When the day rate reaches $100 per day, then we can talk about 50 sen price target. Come on, Perisai already got it, when will Petronas give Velesto $100/d contracts?

Yes, they have HWUs. Please refer to page 6 of their 2018 AR.

You got to be dreaming. HWU assets are cheap. Don't expect much from this business segment. The value of all its HWU assets combined is not even equivalent to one jack-up rig. The real meat is in the offshore drilling business. If you have time, go to CCM and ask for the accounts of their offshore drilling and workover business and compare. Both activities are conducted under separate companies.

Wait until Petronas awards Velesto a contract with $100k day rate then there is hope. Even a PN17 company like Perisai already got it so when is Velesto?

Even if Perisai's rig is 400ft, the market day rate for 400ft is not even $100k yet, Do remember that Perisai is PN17 company. Usually Petronas does not award contracts to companies with bad financial position as there will be questionable quality of work or concern in completing the work.

This is internet information:

https://www.bassoe.no/data/files/20190617-bassoe-analytics-jackup-report.pdf

This is absolutely unbelievable. The contract awarded to Perisai by Petronas has an estimated day rate of $100k.

Even Perisai which is a PN17 company gets a contract from Petronas. I thought Velesto will get preference from Petronas and monopolise?

I think the oil price has found a new normal level. What's important is that more rigs need to be taken off market to reduce the oversupply so that the day rate can go up.

Misc already improving, why this Maybulk still not tracking this recovery?

This is the key to higher profit:

The daily charter rate for jack-up rigs in Malaysia is about US$70,000, not much higher than the US$68,000 seen during the downturn. In 2014, the daily charter rate was US$149,000.

Even if they hit full utilisation, this counter will remain in this price range unless the day rate goes up.

The Petronas gift card you can use straight at the pump. The terminal will show the balance first and then ask if you want to fill up straight or certain amount. Does the terminal show zero balance for your card?

Armada is stuck with many OSVs and this industry is a lot more oversupplied compared to jack-ups.

This counter have to invest long term and don't expect the price to fly. We all know this 0.2 to 0.3 range is the bottom but nobody knows when the price will climb. Getting contracts from Petronas is a given thing but more importantly is, when the day rate will go up. If the day rate doesn't go up, nothing will happen to this counter.

100m is a bit too ambitious. I will be happy if it can exceed 50m.

Additional impairment or write back will only happen at the Q4 result. The upcoming announcement is for Q1 19 result.

I hope those Petronas contracts allow Velesto to review the day rates if it really shoot up within a year or two. If the rates are locked, then their profit will be capped even if the market really booms.

People are buying 1 lot simply because this company gave door gifts and vouchers worth up to RM50 in the past. So if you buy 1 lot, you can recover all your capital by just attending one AGM. The AGM should be somewhere in May so it's time to buy now.

HuatlaiOnglai I’m not expecting the share price to fly in short term but rather a gradual increase in mid terms. One will know if they understand the amount of share that this counter have. Still very promising counter for mid to long term.

Agree with you. It will take some time but no harm buying and hold. The concern is if it takes too long for the rig market to clear the oversupply, the rigs owned by Velesto will get older and will command a lower DCR compared to newer ones in the long term. The next question is, how will they finance the rig replacement. Their rigs are all delivered between 2010 to 2014.

Mob and demob are always borne by oil companies. This is nothing new. More importantly is where is the mob and demob point. If the rig is in East Malaysia and the contract defines the mob point to be a location somewhere in West Malaysia, the oil company is not going to bear the mob cost from East to West Malaysia. The oil company is only going to bear the cost of the mob point defined in the contract (normally it's a supply base) to the drilling area in West Malaysia.

**Lower costs: Since 2014 the cost of developing new projects has fallen on average by 30%


This lower cost is contributed by contractors like Velesto due to the low DCR for drlling rigs.

Yes, RM1 is only a slogan, that I very agree. Current oil price is $70. Based on simple maths, for the share price to triple to RM0.90, the oil price must also triple. Do you think this is possible for the oil price to ever reach $210?

What you said is known by many people. What I want to know is how much is the DCR for these new contracts? I bet the contract value will not be disclosed.

I also doubt Sapnrg sold their tender rig business. They are the biggest tender rig player in the world now after buying from Seadrill. They will realise a big loss if they sell now.

Why are we so anxious about contracts? This company is already hitting high utilization and gets preference from Petronas so contracts winning is like a given thing for this company. The bigger concern is when and how fast the DCR will move up.

This price level is like the bottom already but you have to set your expectation right. This counter is not going fly but crawl its way up. It hit the high of RM4.40 and i assume investors were paying this price on the assumption all rigs were operational at the highest DCR. Supposing that history will repeat in future, I am actually looking at a highest price of RM1.20 at best because the shares are a lot more diluted now than it was at RM4.40.

Sapnrg truly is the biggest in terms of debts too.

Mabel, oil and gas is a big industry and your question is too general. It involve upstream and downstream and then further segregated by 1st, 2nd and 3rd tier. 1st tier is at the highest value chain like oil companies which subcon to 2nd tier like Velesto. Then the 2nd tier also engage 3rd tier on some of the support services like manpower, catering or shipyard.

I would say Sapnrg is the biggest in terms of service offerings.

JJchan, leased from who? Foreign rigs? Petronas allows that?

Last quarter utilization was already quite high at over 90% and it gave us an indication of how profitable this company can be with the best case scenario. Use that information to gauge how profitable this company will be in future assuming it can still maintain that high level of utilization and DCR doesn't move much, simple as that.

Haha, Q1 normally will be announced next month, maybe right before the AGM. Remember to attend their AGM and ask the right question instead of trusting someone in this forum.

I will be amazed if this company buys more rigs. You can talk and talk about Petronas rig demand but velesto is not buying more rigs even if it is cheap now. I believe velesto now owns 7 JUs and 5 HWUs but Petronas needs more than this, if i read correctly.