VELESTO ENERGY BERHAD

KLSE (MYR): VELESTO (5243)

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Last Price

0.16

Today's Change

+0.005 (3.23%)

Day's Change

0.155 - 0.16

Trading Volume

10,388,500


25 people like this.

21,306 comment(s). Last comment by Macgyver11 17 hours ago

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

Aspects another production cut when opec+ group meets this coming sunday. When this happens then its could easily trigger the oil price back to 100usd again. 0.18c and above is possibility.

Expertise

1,307 posts

Posted by Expertise > 1 week ago | Report Abuse

52week high..slow and steadily verespro

Expertise

1,307 posts

Posted by Expertise > 1 week ago | Report Abuse

I think they are aiming oil price usd200 bpd for 2023

Posted by WarrenBuffett8888 > 1 week ago | Report Abuse

on the way to 30cts...

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

Damn hot man veryslow today...huat!!!

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

Don't sell it soon, looks 0.20c is possible next.

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse


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TOPICS
Velesto to ride on higher drilling activities, rig rates
CORPORATE NEWS
Friday, 02 Dec 2022

Velesto tells analysts drilling exploration programmes would likely increase in 2023 to 2024, particularly at the Malaysia-Thailand Joint Development Authority gas development area in the Gulf of Thailand.

PETALING JAYA: The prospects for Velesto Energy Bhd are expected to improve further amid higher drilling activities and rig utilisation rates.

The oil and gas offshore drilling services provider told analysts at a recent briefing that drilling exploration programmes would likely increase in 2023 to 2024, particularly at the Malaysia-Thailand Joint Development Authority (JDA) gas development area in the Gulf of Thailand.


The rig market, on the other hand, continued to tighten, with marketed rig utilisation rate at 91% in South-East Asia and 92% in Malaysia.

The latest rig counts in South-East Asia comprised 42 contracted, four idle and three cold stacked, while in Malaysia (including Malaysia-Thai JDA), there were 11 contracted rigs, and one rig each that was idle and cold stacked, TA Research wrote in a report, citing Velesto’s management.

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It noted that current daily charter rates in South-East Asia ranged from US$58,000 to US$120,000 (RM255,560 to RM528,710), while that in Malaysia continued to lag behind, ranging from US$58,000 to US$88,000 (RM255,542 to RM387,730).

“This was because the existing contracts were awarded earlier before the ensuing spike in oil prices. As such, Velesto expects Malaysian rates to eventually catch up as legacy contracts are replaced with new ones.”

It pointed out that there was likely limited upside for Velesto’s shares, given the fact that the counter had rallied about 71% over the past three months, as investors priced in the expected earnings turnaround for the company as well as new long-term charters and higher daily charter rates.

Lewis Lee

1,314 posts

Posted by Lewis Lee > 1 week ago | Report Abuse

next week Velestow ("very slow") will change name to Velefast ("very fast") ! lol

WEIMEY

39 posts

Posted by WEIMEY > 1 week ago | Report Abuse

I have keep giving strong buy call since begining of the year!!!

SinGor

3,865 posts

Posted by SinGor > 1 week ago | Report Abuse

i think Bursa will react positively bcos Ah Wa.Kor is Finance Minister. And his Advisor is Merican from
Petronas. Maybe 2 thumbs Up for Velesto and SAP

DickyMe

12,140 posts

Posted by DickyMe > 1 week ago | Report Abuse

Nope! Bursa will react cautiously because thieves and laid backs are still there.
Better to invest in foreign stocks. Useless government line up.

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

Nope! Wrong. Again Anwa£ need majority support in first hearing when parliament opens on 19th otherwise everything that he work hard for will be ruined...this cabinet is purposely to please certain group, at least for temporary. That's why you see most of bandits in line. Don't worry he will fix it once secured and maybe he will abolish certain law (akta).

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

The worse is over for veryslow...now time to rise.

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 week ago | Report Abuse

Still need some magical touch from our big brothers..epf & pnb.

SinGor

3,865 posts

Posted by SinGor > 1 week ago | Report Abuse

It is falling Ringgit that is causing massive import inflation. One of the fastest way to pop-up ringgit is to
attract Foreign fund into Bursa ( FF buy ringgit in Billions and how can ringgit donT appreciate ) As a matter
fact i heard Anwar saying Bursa is too soft. During Anwar as Finance Minister, Bursa is always in semi-Bull.
Short Term( 6--12months) if Bursa is in Bull phase, it will Buy Anwar some time to fix the economy

SinGor

3,865 posts

Posted by SinGor > 1 week ago | Report Abuse

Anwar should Fired All those controlling Bursa Rules & Regulations. T+2 only helps Stock Broker House
bcos if you want T+7 ikan Bilis has to pay interest to Them to finance. The number of active remisiers was about
3000 during Anwar time, now you hardly see 1000. Volume of Trade never increase since 1990, we never had
a Super Bull Market 20years ago. 15% up in a year, they are screaming Bull Market--

Posted by WarrenBuffett8888 > 1 week ago | Report Abuse

30cts is on they way.....hold tightly your seat belt....

SinGor

3,865 posts

Posted by SinGor > 1 week ago | Report Abuse

I am stocking up on Good tasting Biscuit and premium brand instant coffee for next week Rally.
Let hope Velesto is Lead Bursa Bull, breaking record price and Volume next week

Posted by StartOfTheBull > 5 days ago | Report Abuse

Still lagging behind O&G stocks.

Posted by wallstreetrookieNEW > 5 days ago | Report Abuse

Yep

Posted by wallstreetrookieNEW > 5 days ago | Report Abuse

This stock is for traders

roslaom

498 posts

Posted by roslaom > 5 days ago | Report Abuse

PNB already owns significant % of velesto. Buying more could trigger MGO. Foreign fund and local unit trusts could push the price. In the mean time, merangkak dulu

SinGor

3,865 posts

Posted by SinGor > 5 days ago | Report Abuse

MGO has been long trigger since 3years ago. PNB holds more than 40%. Together with other Local Institutions
60%+ are held by Big Boys. Another huge block are held by ikan Bilis bought at RM4.00---30sens. Velesto
is actually a tightly held Big Cap. You will Not see 200mil Vol even at 50sens

roslaom

498 posts

Posted by roslaom > 5 days ago | Report Abuse

Now tunggu big boys sell to each other.

fooming

14 posts

Posted by fooming > 5 days ago | Report Abuse

Meanwhile, OPEC+ will convene in Vienna on Sunday, and Goldman Sachs said there is a high probability that the cartel will further reduce its oil production quotas, putting upward pressure on prices.

EAGLE

285 posts

Posted by EAGLE > 5 days ago | Report Abuse

OPEC maintained

Posted by StartOfTheBull > 5 days ago | Report Abuse

Velesto is like a salted fish come alive.

goldmans

10 posts

Posted by goldmans > 5 days ago | Report Abuse

upward

CHLEONG888

895 posts

Posted by CHLEONG888 > 5 days ago | Report Abuse

Limit up???

Macgyver11

1,838 posts

Posted by Macgyver11 > 5 days ago | Report Abuse

Offshore oil and gas investment continues to heat up, and investors are increasingly interested in oil and gas stocks. Is the long-lost bull market quietly approaching?

After sharing the field of Offshore Support Vessel (OSV) in the previous issue, this issue of "Stocks in the Sea" will continue to talk about oil and gas stocks, and share another offshore asset with a hot prospect-Jack Up Rig. Also, VELESTO Energy (VELESTO, 5243, Main Board Energy Group), which is firmly in the leading position in the domestic drilling rig market .

Macgyver11

1,838 posts

Posted by Macgyver11 > 5 days ago | Report Abuse

The rental rate of jack-up drilling rigs has risen rapidly
Due to the high cost and the lack of new investment for many years, the market supply is limited. Stimulated by the obvious strengthening of offshore oil and gas investment, jack-up drilling rigs are now emerging as hot oil and gas assets. The utilization rate and rent are rising rapidly. Recently, Asset transaction prices are also considerable, the most notable of which is the purchase of seven jack-up drilling rigs produced between 2008 and 2013 by the Middle East drilling giant ADES Arabia Holdings for US$628 million (approximately RM2.8 billion). And 3 of them are on hold. In addition, they also bought the only drilling rig of the same model from ICON (ICON, 5255, Main Board Energy Group) for US$85 million (approximately RM380 million), and started a battle for assets First shot.

According to VELESTO Energy’s third-quarter operating report released on its official website last week, Malaysia currently only has about 12 jack-up drilling rigs, except for one that has been put on hold and one that is on standby, the remaining 10 rigs have been signed for work contract. There are 49 drilling rigs of the same type in Southeast Asia, 42 of which have been signed. After deducting 2 idle drilling rigs, the production capacity reservation rate has reached 91%. The supply of drilling rigs in the reflected area is quite tight, and there is no solution in the short to medium term. The surge in raw materials has made the cost of new drilling rigs too expensive, deterring potential investment, not to mention that new drilling rigs generally take more than two years to build.

Although 10 years ago at the peak of oil and gas pressure, it was obviously a painful lesson to focus on ordering drilling rigs frantically. However, it also puts the company in an extremely favorable position today, holding more than half of the domestic and relatively new drilling rigs. The drilling rigs are bound to emerge as the biggest winners when the market recovers.

In the "2022-2024 Oil and Gas Activity Outlook" report released by Petronas a few months ago, it is expected that 9 jack-up drilling rigs will be needed in 2022 and 2023, and the demand will increase significantly to 16 in 2024, exceeding The total number of jack-up drilling rigs in my country shows that there may be a further imbalance between supply and demand. At that time, the competition for drilling rigs will become more intense, and VELESTO Energy is the potential big winner.

Macgyver11

1,838 posts

Posted by Macgyver11 > 5 days ago | Report Abuse

Good performance and strong orders
VELESTO Energy's current order outlook is extremely strong. It was only at the beginning of last month that it successfully won a comprehensive work contract worth US$135 million (approximately RM600 million) to provide comprehensive drilling services for 14 oil wells in the North Malay Basin. Business will benefit from this new type of order. Including the latest contract, there are more than RM1.3 billion orders in hand, and there are still bids for jobs worth RM4.5 billion.

1.3 billion orders in hand to bid for 4.5 billion projects
Just 3 months ago, the company’s orders were only RM744 million, and the number of jobs in the bidding was only RM3 billion, which shows the enthusiasm of overseas activities.

As of the third quarter of September 30, 2022, thanks to the recovery of drilling business, VELESTO Energy has finally turned losses into profits, reporting a net profit of RM14.965 million, compared with a net loss of RM52.04 million in the previous period, and a turnover of RM173.77 in the same period million ringgit, up 89.8% year-on-year.

In view of the fact that there is obviously room for improvement in the asset utilization rate and rent, and the strong order outlook, the latest performance is obviously just the beginning, and the future performance is expected to be more and more courageous under the surrounding favorable conditions.

The most critical benefit of rising rents has not yet been reflected in the latest performance. Petronas in the early years when the oil and gas industry was in a downturn, in order to control costs, it kept the rents of various assets at a low level. Although the outlook for oil and gas has improved significantly, Malaysia’s offshore asset suppliers have Still serving Petronas at rents that are far lower than the regional market, but negotiations on rent adjustments have been going on for some time, and I believe there will be good news soon.

The average daily rent of drilling rigs under VELESTO Energy in the third quarter was US$74,000, which has remained roughly flat this year. Compared with the average rent of US$68,000 to US$70,000 from 2017 to 2021, the increase is obviously not large. It should be noted that it is driven by soaring demand , regional peers are now even getting more than $100,000 in rent. At its peak in 2014, the average daily rent for drilling rigs under VELESTO Energy was as high as US$151,000, more than double the current rent.

It is worth mentioning that in view of the abundant silver bullets of the oil giants in the Middle East, 15 drilling rigs in Southeast Asia will soon go to the Middle East to work for the world's largest oil producer Saudi Aramco, which may further tighten the supply of drilling rigs in the region and catalyze Rents continue to rise.

Overall, the good luck that VELESTO Energy has been waiting for for many years has finally come. Under the medium-term environment of insufficient supply and strong demand, it is estimated that the company will be full of money and earn back these years of losses for at least the next two years During the golden age, the stock price traded at only 0.5 times the book value, which added to the investment charm. It is expected to once again become an oil and gas stock that has attracted much attention from the market, and its outlook is impeccable.

SinGor

3,865 posts

Posted by SinGor > 5 days ago | Report Abuse

Tomolo should be 19 or 20sens bcoz Oil going back to $90 tonite

SinGor

3,865 posts

Posted by SinGor > 5 days ago | Report Abuse

I think 30sens comes much earlier than i expected----Merry Christmas

Macgyver11

1,838 posts

Posted by Macgyver11 > 5 days ago | Report Abuse

Oil could hit usd 100 soon. Report from bank of America...

Macgyver11

1,838 posts

Posted by Macgyver11 > 5 days ago | Report Abuse

Oil prices may hit $110 a barrel in 2023 but Russia risk could 'turbocharge' them even higher, BofA says
Brian Evans
Oil tanker
Suriyapong Thongsawang
Brent crude could climb as high as $110 per barrel in 2023, according to Bank of America.
Analysts wrote in a note on Thursday that a price cap on Russian oil remains an upside risk.
The note outlines other key risks, including OPEC members like Iraq and Libya.
Brent crude oil could climb as high as $110 per barrel in 2023, though there are several risks that could add more more pressure on prices, according to a note from Bank of America.

Prices for the international oil benchmark averaged around $101 per barrel this year, and BofA sees more of the same next year, predicting an average of $100 and a peak of $110 at the height of the driving season. Brent will generally be lower in the first quarter of 2023, compared to the rest of the year, analysts added.

Brent currently trades around $86 per barrel, meaning the high end of BofA's forecast represents an increase of 28%.

But BofA analysts also noted several upside risk factors for oil prices next year, namely a price cap on Russian crude.

On Friday, European Union officials agreed to set the cap at $60 per barrel. That will take effect on Monday, alongside a ban on Russian oil imports into the EU and related services for cargoes worldwide. Russia has said it won't sell oil to any price-cap participants, and analysts have estimated its oil exports could fall by up to 1 million barrels per day.

"At present, we embed Russian total oil production levels of 10 mn b/d in our assumptions for 2023 compared to the 9.59 mn b/d figure provided by the IEA. Any meaningful downward deviation from these figures could turbocharge oil prices higher," the BofA note said.

Russia presents the largest upside risk to oil prices, but there are other risks lurking as well, analysts said. In particular, further supply disruptions from OPEC producers like Libya, Nigeria, Iraq or others could "put the oil market on notice."

A shortfall of 1 million barrels a day or more could come from a number of producers, especially from OPEC, with BofA estimating that every unexpected swing in supply or demand of 1 million barrels tends to move Brent oil prices by $20-$25 per barrel.

roslaom

498 posts

Posted by roslaom > 4 days ago | Report Abuse

Jgn ckp byk. Go long.

George99

213 posts

Posted by George99 > 4 days ago | Report Abuse

Tak nampak 0.2 and 0.3 sen pun.. you org dah tembak byk..adoi..1 sen up shj..... Wahai... Nanti velesto sampai 0.5 you org baru start engin tembak la.....

EAGLE

285 posts

Posted by EAGLE > 4 days ago | Report Abuse

Haiyaaa kasino buka suda

Vicky

890 posts

Posted by Vicky > 3 days ago | Report Abuse

Never learn from 2021 meltdown. Recession sure oil

Macgyver11

1,838 posts

Posted by Macgyver11 > 2 days ago | Report Abuse

Baru veryslow start to pick up brent jatuh pulak...adoi!

Lewis Lee

1,314 posts

Posted by Lewis Lee > 2 days ago | Report Abuse

Ok lah, tired running d , let it take a break .....
Next week pecut lagi >>>>>>>>>>>>>>>

Lewis Lee

1,314 posts

Posted by Lewis Lee > 2 days ago | Report Abuse

"Overall, the good luck that VELESTO Energy has been waiting for for many years has finally come. Under the medium-term environment of insufficient supply and strong demand, it is estimated that the company will be full of money and earn back these years of losses for at least the next two years During the golden age, the stock price traded at only 0.5 times the book value, which added to the investment charm. It is expected to once again become an oil and gas stock that has attracted much attention from the market, and its outlook is impeccable. "

Lewis Lee

1,314 posts

Posted by Lewis Lee > 2 days ago | Report Abuse

The average daily rent of drilling rigs under VELESTO Energy in the third quarter was US$74,000, which has remained roughly flat this year. Compared with the average rent of US$68,000 to US$70,000 from 2017 to 2021, the increase is obviously not large. It should be noted that it is driven by soaring demand , regional peers are now even getting more than $100,000 in rent. At its peak in 2014, the average daily rent for drilling rigs under VELESTO Energy was as high as US$151,000, more than double the current rent.

It is worth mentioning that in view of the abundant silver bullets of the oil giants in the Middle East, 15 drilling rigs in Southeast Asia will soon go to the Middle East to work for the world's largest oil producer Saudi Aramco, which may further tighten the supply of drilling rigs in the region and catalyze Rents continue to rise.

Lewis Lee

1,314 posts

Posted by Lewis Lee > 2 days ago | Report Abuse

If next year average rigs rent can shoot up to US$100K to US$150K, share price can surely shoot up to 50ct and above !!!

Macgyver11

1,838 posts

Posted by Macgyver11 > 2 days ago | Report Abuse

Oil bounced back..huat!!

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 day ago | Report Abuse

KUALA LUMPUR (Dec 8): Local oil and gas (O&G) players are expected to benefit from the rise in domestic capital expenditure (capex) by Petroliam Nasional Bhd (Petronas), said analysts.

Maybank IB Research, citing a 34% year-on-year (y-o-y) increase in Petronas' domestic capex, said its top picks in the sector include Yinson Holdings Bhd, Dialog Group Bhd and Hibiscus Petroleum Bhd.

"Meanwhile Bumi Armada Bhd, Velesto Energy Bhd, Wah Seong Corp Bhd and Malaysian Marine & Heavy Engineering [Holdings Bhd] are our small and mid caps 'buy'," it said.

It said Petronas is on track to meet its RM100 billion earnings target for FY2022 after the national oil company posted strong nine-month financial results with core net profit of RM72 billion, up 173% y-o-y.

“We expect oil price to remain elevated, as the winter period approaches and geopolitical risk remains high,” it said, adding that crude oil average estimate for FY2022 is unchanged, at US$100 per barrel (Brent).

“We do not rule out a higher oil price outlook in FY2023 considering the continued tightness in the global supply market, due to the prolonged structural under-investment since 2015,” it added.

Maybank also noted Petronas’ efforts in carbon emissions abatement and scaling up investment allocation on carbon neutral projects.

“With its NZCE 2050 pathway announced on Nov 1, 2022, Petronas has set a near-term target to cap operational emission to 49.5 million tonnes of CO2e by 2024 in Malaysia and achieve 25% absolute emissions reduction groupwide by 2030 (based on 2019’s baseline),” it said.

It said for this, Petronas will allocate 20% of its capex for decarbonisation projects and expansion into cleaner energy solutions over the next five years (2023 to 2026). Petronas targets 50% improvement in cashflows from operations by 2025 and 30% growth in revenue from new non-traditional business by 2030.

Macgyver11

1,838 posts

Posted by Macgyver11 > 1 day ago | Report Abuse

Malaysian contractor scoops Hess innovative drilling prize
Velesto Energy lined up for North Malay Basin development

7 November 2022 21:56 GMT UPDATED 7 November 2022 21:56

Velesto Energy has won an integrated rig, drilling and completion (i-RDC) contract for the next phase of US operator Hess’ North Malay Basin full field development offshore Malaysia.

The Malaysian contract will provide i-RDC services for the 2022 to 2024 campaign on the NMB full field project, for which it supply its jack-up Naga 5 (Dragon 5). The estimated contract value is $135 million. Velesto is partnering with US oilfield services giant Halliburton as its technical partner to provide to drill and complete these 14 offshore wells for Hess.

i-RDC is a concept whereby integration of drilling rig services, equipment and - in some cases – the procurement of materials for drilling & completion services are covered under a single contract between the operator and a service company as the i-RDC contractor.

“The i-RDC services contract is the first jack-up rig drilling contract to be awarded through an i-RDC arrangement in Malaysia. This is a step change in Velesto’s business offering as it demonstrates our unique value proposition that paves the way for closer collaboration among the client, lead contractor and services partners,” commented Velesto president Megat Zariman.

“As our service portfolio expands through this strategic partnership, we are well-positioned to secure more potential opportunities to cater to the needs of our clients,” added Zariman.

Phased development
Hess and equal 50% partner Malaysia's national upstream company Petronas Carigali have been developing the NMB asset on Block PM 302 offshore Peninsular Malaysia in phases. NMB Phase 3 came on stream a couple of months ago adding another 100 million cubic feet per day of gas via the Bergading-B platform, boosting production to some 400 MMcfd.

Hess flowed first gas from NMB in 2013 via an early production system on the Bunga Kamelia field, which was followed four years later by phase one of the full field development.

Macgyver11

1,838 posts

Posted by Macgyver11 > 18 hours ago | Report Abuse

https://finance.yahoo.com/news/russia-may-cut-oil-output-134709319.html

Putin says will cut oil production and won't sell oil to G7 countries that imposed price cap over Russia. This could easily drive the oil price to upwards...let see

Macgyver11

1,838 posts

Posted by Macgyver11 > 17 hours ago | Report Abuse

Russia second largest oil exporter after Saudi and also one of Opec+ member.

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