Posted by leeabraham > 4 weeks ago | Report Abuse

anyone know why the selldown in past few days?

Posted by RJ87 > 4 weeks ago | Report Abuse

completely clueless…either press down to collect cheap ticket for specular good QR next month…
Or genuine concern of velesto’s prospect.

Else, it’s just battle of titans between sharks and giant squids.

Posted by tankahban123 > 4 weeks ago | Report Abuse

The Special Periodical Surveys (SPS) will take approximately10 to 30 days only, not a major concern, the investor should monitor the charted rate instead, the chartered rate will determine the earning or loss, not the SPS.

Posted by Squirtle > 4 weeks ago | Report Abuse

Weak hand is all folded liao
Final table set

Posted by Macgyver111 > 4 weeks ago | Report Abuse

I see no other reason except to press down the price and allowed someone to collect cheap ticket. PNB and HL still the top major shareholder beside others. Recently I saw more shariah type funds joined in.

Posted by Macgyver111 > 4 weeks ago | Report Abuse

All the big institutionals received good lump sums of dividends recently after many years hold this stock. My estimate, for PNB alone is around 10.9 million. Some foreign investment banks already left after taking the dividend profit. Maybe this could be the reason for the heavy selling recently. Our dividend is like peanut compared with theirs. The advantages and disadvantages of dividends...😁😄

Posted by Macgyver111 > 4 weeks ago | Report Abuse

Hopefully PNB can close the gap..

Posted by Macgyver111 > 3 weeks ago | Report Abuse

From BIMB

Velesto’s average DCR is expected to continue its upward trend, to reach a tipping point in 3Q24. As such, we expect the company to post a ‘sequentially stronger quarter ahead’.
On that score, Velesto is expected to sustain its earnings well into FY25. The rig suspension by Saudi Aramco may release some supply into the market, however sector utilization rate is expected to stand at a healthy level of close to 90%.
The company is ready to embark on merger and acquisition (M&A) as an avenue for its next phase of growth, leveraging on its healthy balance sheet.
Maintain our BUY call on Velesto with TP RM0.34 based on 1.1x P/B that is pegged to FY24F BVPS of RM0.32. We think the current share price has not fully reflect its earnings growth from rising DCR.
A Decent Start in 1Q24
Velesto posted a decent 1Q24 core earnings of RM46.8mn mainly driven by rising average daily charter rate (DCR). The DCR rose 8% QoQ to USD107k/day on the back of the new rate approved by Petronas for NAGA 2, NAGA 3, NAGA 4 and NAGA 6 jack-up rigs effective February 2024. Meanwhile, the revised dayrate for NAGA 8 that is working for Carigali Hess has commenced in April 2024. Overall, this should propel the average DCR to rise further in the coming quarters with peak DCR possibly achieved in 3Q24. To recap, we have imputed an average DCR assumption of USD125k/day in our FY24F earnings estimate.

Sector Utilisation Rate is at Peak Cycle
Rig market conditions are still very tight with marketed utilisation rate (i.e., sector utilisation rate or SUR) has maintained above 90% since at least 4Q23. In April 2024, the SUR was at 94%. This was despite the increase in the number of marketed supplies that rose to 438 rigs (October 2023: 421 rigs) while the number of contracted rigs is 410 rigs (October 2023: 392 rigs). While the rig suspension made by Saudi Aramco would release some supply into the market, the SUR is expected to remain very healthy at 88% by end 2025, according to an estimate.

Looking for the Next Growth Engine
As the sector has reached a peak cycle, management anticipates that there is limited upside to DCR in future. Hence, the management is proactively looking for an M&A opportunity to enhance its long-term prospect.

Maintain BUY on Velesto with TP of RM0.34 Maintain Velesto as a BUY with TP of RM0.34 as we peg 1.1x P/B to FY24F BVPS of RM0.32. This implies 16x FY24F P/E. We believe the market will re-rate on the stock amidst stronger earnings visibility from the shortage of offshore rigs.

Posted by Rwan88 > 3 weeks ago | Report Abuse

Good sign

Posted by RJ87 > 3 weeks ago | Report Abuse

whoever bought in the large volume exchange actually holding it. Interesting.

Posted by EAGLE > 3 weeks ago | Report Abuse

For long-term growth, recurring revenue is needed. M&A on producing oil fields?

Posted by Macgyver11 > 3 weeks ago | Report Abuse

Heard Petronas taking over ExxonMobil. Not sure either this can give some impact to Velesto.

Posted by SinGor > 3 weeks ago | Report Abuse

Petronas taking over Operation which means if Petronas has More orders they can extract more Oil but
Exxon Cannot demand more for their existing Clients ( under nego )----However if Petronas need "new oil wells"
they still have to Drill More Holes ( Velesto Job )---Old wells usually Dried up after 2--3 years

Posted by Macgyver11 > 3 weeks ago | Report Abuse

Noted. Thks bro.

Posted by SinGor > 2 weeks ago | Report Abuse

https://oilprice.com/Energy/Crude-Oil/Kuwait-Announces-Massive-Offshore-Oil-and-Gas-Discovery.html
_____________________________________________

All jack-up Rigs Dumped by Saudi will be taken over by Kuwait New Offshore New Fields-----

Posted by Macgyver11 > 2 weeks ago | Report Abuse

https://www.upstreamonline.com/rigs-and-vessels/offshore-drillers-big-win-in-brazil-a-vast-improvement-on-suspended-saudi-contract/2-1-1683678

Grounded Borr drilling rigs hired by Brazil. Among many rigs that suspended by saudi only one rig managed to secured contract in offshore of Malaysia. Very sad to read that they're paid US185k meanwhile Petronas pay Velesto below US130k.

Posted by SinGor > 2 weeks ago | Report Abuse

Bloody Petronas---only "Eat" Kampong Boys

Posted by Macgyver11 > 2 weeks ago | Report Abuse

Hv no idea why Velesto keep on dropping dispite good qtr earning, higher DCR compared with previous years and full order book. Can any one explain that?
Eeeem! 😣😞

Posted by madakiman > 2 weeks ago | Report Abuse

Because technical support at 0.22?

Posted by bhza2012 > 2 weeks ago | Report Abuse

Hoyoo.. apa citer velesto. Turun lagi

Posted by RJ87 > 2 weeks ago | Report Abuse

Just bite the bullet I guess.

Posted by leeabraham > 2 weeks ago | Report Abuse

what going on ?

Posted by Rwan88 > 2 weeks ago | Report Abuse

collect bullet for batle next 2 week.... as bank said "hold". I trust them

Posted by Macgyver11 > 2 weeks ago | Report Abuse

Sarawak's Ministry of Utility and Telecommunication announced on May 13 that Petroliam Sarawak Bhd (Petros) will take over Petronas' role in all natural gas trading activities in the state, effective July 1.

For me it's good news indeed. Petros want to dig oil meanwhile Petronas also want to dig oil..so the demand for rigs services will rise up. Maybe renting rigs to Petros can get higher DCR.

Posted by Macgyver11 > 2 weeks ago | Report Abuse

To all Velesto BOD, move your rigs to sarawak offshore...boikot Petronas 😂🤣

Posted by RJ87 > 2 weeks ago | Report Abuse

Pu-ki-mak Ambank issue call warrant VELESTO-C38 and then talk sh*it about Velesto. Very clever.

Posted by Goodwill5 > 2 weeks ago | Report Abuse

Price of Velesto hit Double Tops at price RM0.315; From that resistance of RM0.315, price structure started Liquidity Run downward or downtrend until now price structure is in consolidation with a Flag Pattern waiting to make a breakout thr ough upper boundary of Flag Pattern; base on the consistency of RM 60 million profit per quarter for 12 months, the price structure will achieve RM0.64 in coming months.

Posted by Michael Kwok > 2 weeks ago | Report Abuse

Velesto 22.5 cents
Prefer below 20 cents a while
Please aware capital consolidate as number of shares swell to 8 billion ++
31/7/24 1.45pm
Join me as follower or guide (paid).

Posted by Goodwill5 > 2 weeks ago | Report Abuse

Number of shares is 8216 millions; If profit per quarter is RM60 millions, profit for one year will be RM240 millions. EPS will be 2.92 cents, Dialog PE ratio is almost 25x; Price structure for Velesto will be RM 0.0292 x 22=RM0.64

Posted by bosskubakery > 2 weeks ago | Report Abuse

velesto boleh !

Posted by paperhand123 > 2 weeks ago | Report Abuse

64 sen gogogo

Posted by mikeann > 2 weeks ago | Report Abuse

Bargain Hibiscus & Velesto
Further weakness on Hibiscus should attract buyers looking for rebound upside, with a breakout above the 50-day ma (RM2.43) to aim for the 61.8%FR (RM2.50) and 76.4%FR (RM2.65) ahead, while key retracement supports at the 38.2%FR (RM2.25) and 23.6%FR (RM2.09) cushion downside.

Velesto will be attractive to bargain on any dips towards key chart supports at the 61.8%FR (22sen) and 50%FR (19sen), while oversold rebound should be capped by the 200-day ma (26sen) and 29sen.

TA Sector Research

Posted by VeneerWood > 2 weeks ago | Report Abuse

HLIB tells investors to buy Velesto on weakness 😆

https://theedgemalaysia.com/node/717662

Posted by Macgyver11 > 2 weeks ago | Report Abuse

HLIB owned biggest portions. Last week they collect more through various funds...maybe what they said true otherwise they won't collect recently. Can collect more if you got extra cash.

Posted by DividendGuy67 > 1 week ago | Report Abuse

Here's what I see ...
https://klse.i3investor.com/web/blog/detail/DividendGuy67/2024-07-31-story-h-155233923-VELESTO_Elegant_Chart

Looks like a high probability setup, with great RRR no?
Disclaimer: As usual, you are solely responsible for your own trading and investing decisions.

Posted by DividendGuy67 > 1 week ago | Report Abuse

Or too good to be true? 🤣
PS. Nothing is guaranteed - all "high probability" setups eventually fail.
PS2. The long red candle this week is scary indeed, but not final yet and volume is still not yet complete.
PS3. Whilst charts are beautiful, I'll take fundamentals over technicals any time. Out of the past 10 years, this company's EPS is negative 70% of the time and positive only 30% of the time - won't invest for sure. Maybe cyclical, if trade, must sell later and not hold forever. Last quarter EPS is higher YoY, but no idea if will continue higher in future quarters or not.

Posted by SinGor > 1 week ago | Report Abuse

none cash gain ( forex Gain ) will significant Bump-up Velesto Net profit for next 2 Qr ( 3Qr & 4Qr ) Given
Powell said Sept Rate Cut----Ringgit might Hit 4.2 and below 4.0 in 1Q25

Posted by hzboi > 1 week ago | Report Abuse

Now that is actual tension in the Middle East, you don’t think Malaysian rigs will benefit? We are one missile away from seeing oil shoot back up to $80.

Posted by Goodwill5 > 1 week ago | Report Abuse

Velesto plotted morning star candle sticks pattern which signify that the reversal trend will be started soon

Posted by Skywalker00 > 1 week ago | Report Abuse

Anyone knows if it’s just bad jockey or overpaid jockeys!!!!! Last time UMW cut them bcos of bad jockeys or overpaid jockeys???

Posted by VeneerWood > 1 week ago | Report Abuse

because of uncontrollable jockeys, may be

Posted by RJ87 > 1 week ago | Report Abuse

wait israel hit iran oil refinery and price will go above 100usd a barrel

Posted by SinGor > 1 week ago | Report Abuse

Israel / Iran War is no longer "Maybe " ----it will definitely Happen ---just when

Posted by bhza2012 > 1 week ago | Report Abuse

Mandi darah .. hayoyo

Posted by bullrun168 > 1 week ago | Report Abuse

Sailang all my belongings till underwear to buy-in Velesto at @0.19

Posted by leeabraham > 6 days ago | Report Abuse

koyak

Posted by hafizduhari > 4 days ago | Report Abuse

@SinGor how come?

Posted by Macgyver111 > 9 hours ago | Report Abuse

Aiya! My dear Velesto, when are you going to wake up? Jgn ler test kita up to maximum. Rambut I pun sdh beruban..😂😁😀

Posted by azfar8 > 6 hours ago | Report Abuse

Ya la, kasi sikit happy la. sama-sama happy... sudah tak larat tunggu dah, though baru saja reentry last quarter result...

Posted by Macgyver111 > 2 hours ago | Report Abuse

BusinessToday

Home News
News
Velesto, Top Pick For Oil Sector
By Business Today Editorial -August 13, 2024

Velesto Energy Berhad has been maintaining a steady course despite market fluctuations. Following a recent visit to the Naga 2 jack-up drilling rig, analysts have revised their earnings projections slightly, adjusting FY24-26 estimates by 0% and -5% respectively due to anticipated softness in the rig market.

The updated target price of RM0.32 reflects a marginal decrease of 1 cent, maintaining a 13x mid-FY25E EPS valuation. Analysts retain a BUY call on the stock, highlighting Velesto as a top pick within the sector.

The Naga 2 rig, operational since 2009 and currently undergoing its third Special Periodical Survey at Seatrium’s yard, has demonstrated solid performance across Indonesia, Vietnam, and Malaysia. It remains a robust asset, capable of drilling in water depths up to 350 feet and up to 30,000 feet deep. With its strong contract portfolio, including long-term agreements for several rigs through early 2026 and potential new contracts on the horizon, Velesto is well-positioned to weather any client capex deferment impacts.

Analysts remain optimistic about Velesto’s growth prospects, forecasting a significant 53% increase in EPS for FY25 and affirming the stock’s favourable risk-to-reward ratio.