Posted by tankahban123 > 5 days 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 > 5 days ago | Report Abuse

Weak hand is all folded liao
Final table set

Posted by Macgyver111 > 4 days 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 days 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 days ago | Report Abuse

Hopefully PNB can close the gap..

Posted by Macgyver111 > 4 days 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 days ago | Report Abuse

Good sign

Posted by RJ87 > 3 days ago | Report Abuse

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

Posted by EAGLE > 3 days ago | Report Abuse

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

Posted by Macgyver11 > 2 days ago | Report Abuse

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