Well, since Petronas needs so many rigs, why not velesto buy more rigs since it is so cheap now?

Uzma has secured a contract in Indonesia while this company is still begging for contracts from Petronas. See the difference between a GLC and entrepreneur driven company.

Some reality check here. Assuming this company can repeat the last quarter performance in the next four quarter, you take the EPS of the last quarter and times with 4. The PE ratio is still quite high at 30 sen. Last quarter utilization is already quite high at > 90%. The only way for the profit to go up further is if the day rate increase. Reversal of impairment is also not likely unless the price of new rigs start to rise. Simple check reveals new rigs are now about USD159m. All of their rigs are bought above this price.

Young fleet? Naga 2 was delivered in perhaps 2009 and Naga 8 was 2014. Most of the rigs were acquired with the cost of above USD200m except for Naga 2 and 3. If the industry is really recovering, it's time for new players to jump in because rigs are cheap now.

Sapnrg rigs are not jack up, they are tender rigs. Tender rigs are not easy to get contracts cause it has to be installed on the platform itself and only certain platform can support that, unlike jack-ups which can be used on many types of platform.

Main question is whether there will be further impairment or reversal of impairment in this Q4.

Up? Q4 announcement coming soon. I wonder if there will be impairment again. After so much impairment year after year and debt restructuring, still having quarterly losses. I guess when the management said they will be cash flow positive, this is on the premise if they can achieve 100% utilization.

I know many people subscribed because subscribers got warrants as sweetener. I wonder if the warrant has any value now.

In reality, this company is owned by its financiers. There is only so much PNB can do. Now the price is so cheap, PNB should be able to easily take it private. Why don't they do that? The contracts won by this company are also mostly short term. Due to that, there will always a short idling period before restarting another contract with another client. It's going to be difficult to achieve full utilization. Even a single day without revenue is a significant amount.

If the company gets full utilization, it can probably ngam ngam breakeven based on today's DCR, without full utilization, what do you expect? Funny is analysts still asking us to buy but their target price keeps dropping.

https://www.bloomberg.com/news/articles/2018-11-21/opec-s-worst-nightmare-the-permian-is-about-to-pump-a-lot-more

Some amendments to Labuan tax announced today which doesn't sound favourable to this company. The going just getting tougher.

https://www.bassoe.no/this-is-why-jackup-rig-dayrates-will-double/news/103/

Oil companies are improving but those asset owning service contractors will take some time. This is what happen when you go all out buying assets when price was high.

the worst is over he meant is the internal financing problem they have sorted out, it doesn't mean the worst is over for the industry

There is no synergy in merging with Sapnrg. Just stick to the core business. The global offshore drillers like Transocean or Seadrill just focus on one business, not diversified at all.

Yes, the upline also needs to hit some personal volume to be eligible for the downline volume. It's a good thing that there are still many people do not fully understand the amway business. It shows the market is not stagnating yet and has room to grow.

Those at the top will always be at the top as long as they qualify each month, with the hard work of their down line. The network that they have built will always belong to them and it can even be passed on to their next of kin. When you are new, you start from the bottom and build your network, even if those at the top quit their business, the newcomers still need to work their way up. This is not an employment situation where the top needs to quit for the bottom to be promoted. You will be promoted when you get that volume.

Each business has its cycle. The last time this company went up high was because of buy up before price increase due to GST and so it's a matter of time before another price increase.

Amway is no.1 direct sale company in terms of revenue in the world and the only place you can buy Amway shares is in Malaysia so do appreciate this opportunity.

It is not losing to e-commerce simply because it is not easy for someone in Malaysia to buy an Amway product from a foreigner through internet and ship them into Malaysia. It will be stopped by Customs because they are not approved for sale in Malaysia. So anyone want to buy Amway products have to buy from Amway Malaysia.

The problem with Amway is that their plan is not attractive to young people. The reward is very little at the beginning and it only gets a lot when you move up to higher position. It is not easy for young people to go full time and survive with that little reward. I hope they can fix this.

I used the stock screener in bursamktplc and noted that this is the only company that got a rating of 10 for earnings, fundamental and valuation. Worth investing?

This company has been talking about going to Middle East since 2015. Let's be realistic. To go into Middle East, the rig needs to be towed to that continent. Who is going to pay for that and do you know how much it cost?



JJchan I have no worry about Velesto 2018 results (from now until Sept 2019). Maybe one /two surprise
like securing Biz from Middle-East Countries.
Ppl are jumping with joy when Sapnrg secure 1.8B for 2019 ( 2018 may see Red ) But they
forgot (not IB) that Sap needs about 10B contracts for 2019 to squeeze out some profits ( 1.8B at 10% profit margin = 180m ) Sap needs about 450m(minimum) to cover Cost "every quarter"----

This share is not moving at all. Anyone going to the agm this Friday? Any door gift expected? What is given in the past?

If maintenance cost > potential revenue, that contract would not be signed at all unless ... the client slash the rate or don't even uses their asset, although contracted for. As i have said, contract is meaningless if petronas can ask for standby at zero rate, anytime.

Haiii ... why would any anyone want to dispose an asset that was having a contract expiring in 2018?

Really? This is the general meeting of that entity under liquidation right? Not the listed entity. Still got food voucher? Not bad wor.

General Meeting tomorrow got door gift?

Naga 1 was sold because it has a contract but has no income. Otherwise, why would a company sold a cash cow. Remember this. Petronas can always ask drilling contractor to standby at zero rate. Go read their prospectus again on their contract status at the beginning. This company was supposed to be a no-brainer investment with so many long term contracts on hand until the oil price dropped and Petronas started to invoke certain clauses in the contract.

If Ambank is really undervalue, RHB would have taken over already previously.

"Oil price up or down does Not kill Contract"

When oil price is down, contract will be renegotiated. Don't ever forget why they have to sell off Naga 1 last time. That contract with Petronas was supposed to last until 2018.

Already said many times, it will take some time for the market to mop up the rig over capacity. There is no rig overcapacity in Malaysia but this company still need to match the market day rate when dealing with Petronas. If the day rate doesn't go up, the income won't go up. Now the rate is just nice to breakeven but if any rigs out of contract or need to do dry dock, then it won't be in the black.

Agm already past. Wait for next year.

Seriously, board meetings are held monthly. The management is always occupied with board paper preparation instead of focusing on operations. Despite monthly board meetings all this while which mind you, the directors will get some allowance from attending them, it is not showing any result. Again look at the profile of these directors and see how many of them are actually oil and gas service contractor background.

What was considered cheap just got cheaper.

Nothing wrong with name change. This event is expected as Umwog is no longer part of Umw. I am just afraid it is not due to name change. The management has been booking a few names like "PNB Drilling" etc. since the demerger before deciding to propose this name.

Irrational to sell if due to name change. Everyone should know the name will change when this company was confirmed to be demerged from UMW.

Don't say like that lah. According to someone here, when there are sellers, there must be buyers. Why do these buyers buy? These buyers must know something that we don't. So say this person lah.

Volume is high, you sure this is just margin call of some reckless traders?

According to a 2016 article by the Philippine Star, it was UMW who terminated the rig contract after Frontier Oil attempted to negotiate lower rates due to the falling oil prices.


Try doing that to Petronas. See who will get terminated first ... permanently.

Umwog insisted on the bank guarantee and advance payment because frontier is a small independent oil company with weak financial position. Sometimes I wonder why they even bother to bid or sign for such contract if they have doubt on that oil company.

Where is the gap?

If oil price remains above USD70, then things will get more interesting. If merely touch that price and drop back down then not much of upside gain. Maybank already put the fair value at 33 sen. Another interesting fact in the Maybank analysis is that a foreign drilling contractor, PVD, is getting some drilling contracts in Malaysia. So where is that monopoly that everyone here is dreaming about?

You can't compare an entrepreneur driven company and a GLC. The work culture and management mentality are totally different.

Not sure if putting another director will make any difference. It is the management that is running the show. Directors are just providing check and balance (aka rubber stamp). They may not necessarily provide any value but is receiving allowance from the board meetings every month apart from medical benefits and leave passage.

Datuk ARA not good enough?

But I doubt EPF uses any form of media to mislead the investment community for their agenda.

www.theedgemarkets.com/article/sc-acts-against-escalating-pump-and-dump-activities-social-media

Very well written analysis. Based on history of offshore drilling cycle, it took ten years from the trough no. 1 to reach peak no. 3. So, are you ready hold this share for 10 years to fully reap its profit opportunity? I am very surprised that Maybank wrote such an objective analysis considering they are the major financier for Umwog.

He probably knows some contract wins but I doubt he knows the value or profitability of each contracts. Only the President and certain staff in business development or finance know this info. Anyway, you don't need to know these if you are planning to just profit from the short term price burst after the announcement.

Umwog's Head of Supply Chain.

Just imagine you go to a job interview and got a contract to work. The contract does not state when you will start work but is required to be on stand by and wait for call during the contract period. If you don't get called for work, you don't get paid but you are not allowed to work for another company during the contract period. This sort of contract, you want to accept or not? By the way, you MUST accept such contract and you should know why.

Yawn ... just another call out contract with no minimum wells or number of work days committed.

Already said moving sideway but still use SMA as indicator. SMA should be used in a trending situation.