1) PETRONAS REFINERY NEEDS 54.7 MILLION BARRELS OF EXTRA CRUDE OIL
2) A RM13 BILLIONS CHEMICAL INDUSTRY GOING FOR LAHAT DATU
3) LI KA SHING OF HONG KONG ALSO INVESTING RM500 MILLIONS IN PENGERANG FOR REFUELING OF ULOC (ULTRA LARGE OIL CARRIER) BIGGER & LONGER THAN EVEN WAR CRAFT CARRIER
LOTS & LOTS OF CRUDE OIL AND NATURAL GAS WILL BE NEEDED
PETRONAS HAS INDICATED THEY HAVE 39 OIL RIGS IN MALAYSIAN WATERS
NOW 15
AND 10 to 14 MORE WILL BE REACTIVATED
THAT MEANS IF FULLY RECOMMISSIONED THERE WILL BE 29 OIL RIGS IN OPERATION FOR YEAR 2019 (THE REMAINING 10?)
IF OIL DEMAND IS GOOD THEN FOR YEAR 2020 PETRONAS MIGHT EVEN REACTIVATE THE LAST REMAINING MOTH-BALLED OIL RIGS
THEN?
THEN VELESTO SHARE PRICE WILL HAVE CROSSED RM1.00 & ON ITS WAY TO RM2.00
Thanks for sharing Calvin Tan. Just a question, valuation wise, how do u see Velesto? Its NTA is rm0.34, assuming the company makes rm200 mil in 2019, with 8.22 bill shares and PE of 10, its target price is rm0.24 cents. Or in your view, u have other ways to estimate its future fair value?
thats Fundamental Financial Data Analysis, that does not apply here at all.
now we are talking Pump and Dump, it works differently, there is a Dream Factor Delta which outputs a TP = USD10,000.00 per share. with a PE = 10 Trillion and the future fair value is infinity....
hope this answers your questions.
===================================================== Posted by George Leong > Mar 12, 2019 10:18 PM | Report Abuse Thanks for sharing Calvin Tan. Just a question, valuation wise, how do u see Velesto? Its NTA is rm0.34, assuming the company makes rm200 mil in 2019, with 8.22 bill shares and PE of 10, its target price is rm0.24 cents. Or in your view, u have other ways to estimate its future fair value?
The future of the oil rigs industry is over ….. coz Global Warming has resulted in violent weather in all oceans even in Terengganu waters. As evidenced by 50 knots Pabuk recently. Oil majors are aware of this, that's why they dispose ocean assets cheaply example to Hibiscus et al.
Pump and Dump for short term gain while you still can.
Interesting writeup Bro Calvin and many thanks for it. Bought a substantial amount on Monday morning at 27 sen. Will keep for at least a year as I believe Velesto has along way to go. This is just the beginning of the uptrend. My TP is RM1-00 within a year.
and I think thats why Pengerang is very nicely situated near to Singapore. An Act of God Global Warming above 50 knots typhoonic "like Pabuk recently" wind will blow it up and Singapore should benefit from the explosion......
Nothing wrong with Umbrella Contracts .... and also btw fyi I am not a bumiputra so I do not really expect too much from all these NEP style contract awards to bumi companies whether listed or not.
There is no other oil and gas stock so safe like Velesto right now
Velesto has
1. Superior Assets Most oil rigs and HWUs are only 4 to 5 years old And they are chun chun at the right time in the right place... Just when Petronas is recommissioning moth-balled oil rigs and clod up oil wells
2. Superior Paymasters Jobs contracted from Petronas and Shell ensure prompt payments
3. Superior Balance sheet Of the 3 heavyweights Velesto gearing only 0.3 to 0.4. All backed by valuable real assets in oil rigs and HWUs
4. Superior Price
Velesto was once over rm4. 50 Now only 30.5 sen The opportunity for upside is immense whole losses almost negligible
Velesto has a very strong balance sheet for an oil and gas company. The debts to equity ratio is only 0.41. The short term borrowing is just RM97.1million. Unlike many other oil and gas company, Velesto does not have cash flow problem.
Velesto was Rm4. 50 in year 2014 Now at only 30.5 sen More than 90% discount to Rm4. 50
Those holding UMW Og in year 2014 at Rm4. 50 faced great risk when Crude oil price crashed to USD27 and Petronas decommissioned 25 oil rigs
Now we buy Velesto at only 30.5 sen with new found optimism in the recommissioning of oil rigs by Petronas We are at the very outset of a great opportunity of a multi year oil and gas bull run
Why is ICON left out in the present O &G euphoria ? Got good contracts recently and crazy impairment provisions...watch out for this laggard ,,,,PH related..
Velesto should expand its fleet of rigs by purchasing from others. There are still existing rigs available from others. Malaysian demand for rigs is booming and Velesto has market requirements more than it can meet.
Petronas and others need more than 10 additional jack-up oil rigs in Malaysian waters. Velesto as the single local supplier has only 3 not employed at the moment. I think all these 3 will be taken up in a few months time.
calvin, i dont think Velesto is the only company doing HWU, as i know there are quite a number of OGSE companies in malaysia doing HWU too
No one else has these HWUs that I know of. Not Sapnrg, Armada, Dayang, Penergy, Carimin, Deleum or other players. NO NO NO. NO ONE ELSE HAS HWUs EXCEPT VELESTO!!!
VELESTO IS THE SOLE OPERATOR ACCORDING TO DYNAQUEST
Posted by ipomember > Mar 18, 2019 08:10 PM | Report Abuse
calvin, i dont think Velesto is the only company doing HWU, as i know there are quite a number of OGSE companies in malaysia doing HWU too
No one else has these HWUs that I know of. Not Sapnrg, Armada, Dayang, Penergy, Carimin, Deleum or other players. NO NO NO. NO ONE ELSE HAS HWUs EXCEPT VELESTO!!!
VELESTO IS THE SOLE OPERATOR ACCORDING TO DYNAQUEST
Calvin replies:
I got this news from Dynaquest STOCK PERFORMANCE GUIDE (Year 2015 Sept Edition) Maybe by now Others also got HWU
But so far I went into Sapnrg & Bumi Armada Company Websites & Annual Report & didn't find any HWU yet
Maybe someone can enlighten Calvin if there are others who have HWUs?
One more thing
UMW Og last ordered these HMUs & also Some Oil Rigs in year 2014/5 before Crude Oil Crisis hit All OnG entities badly when Brent Crude fell to USD27 only.
After that many Oil & Gas Companies literally went belly up
I don't see anyone else dare to invest in any HWUs
Every Top Boss Petronas also cut down Rig use from 39 to only 14 after 2014/15 Oil crash carnage
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Posted by Heavenly PUNTER > 2019-03-12 21:09 | Report Abuse
Unker Calvin, this one another of your chun chun call ah? Got some spare funds tmr sailang velesto