VELESTO ENERGY BERHAD

KLSE (MYR): VELESTO (5243)

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Last Price

0.235

Today's Change

0.00 (0.00%)

Day's Change

0.23 - 0.24

Trading Volume

44,966,900

Additional Listing


Ann. Date Date Type Units Price View
Discussions
28 people like this. Showing 50 of 24,110 comments

bhza2012

Wait for the best price to collect more

1 week ago

RJ87

Strange strange, if they want to take profit. They do quietly at high price.

Shakeup like this, with such big volume; really no idea what they upto. Battle of the giant. Someone taking on PNB manipulator. Big volume with no news no nothing.

1 week ago

bhza2012

Somebody press the price, maybe

1 week ago

surviver

i manage to increase some at 0.235 to leverage down the price of this share, hopefully the share price will shoot up. Good luck guys

1 week ago

Macgyver111

Weak out
Strong remain strong.
They pressed up to maximum..

1 week ago

xcraft

This really challenging your heart to max

1 week ago

Macgyver111

Strongly believe will rebound back strong. My guess is some big2 shark collecting now.

6 days ago

surviver

i have same feeling with you too. hopefully can make some profit. cheers

6 days ago

Macgyver111

They do the same way back in 2019..

6 days ago

kuningNo1

Big player all laugh to the bank, bilis hold and get lock for 4-5 year may be.

6 days ago

Macgyver111

I collect some..take max risk also. Let see our luck

6 days ago

Macgyver111

If go below 0.20 poochi. If rebound back then all the way back 0.27/0.28..fingers crossed...

6 days ago

bullrun168

Top up more Velesto at @0.235
Heng ah, Ong ah, Huat ah !

6 days ago

surviver

Heng ah, Ong ah, Huat ah !

6 days ago

toffeemoose

Heng ah, Ong ah, Huat ah !

6 days ago

Harryww

The big sharks are pushing it's down until 0.20 before end of this month.

6 days ago

RJ87

eat rice eat porridge see you dy Velesto. Whacked another 200k shares at 0.235.
If short seller not buying back the position, means it's legit someone with shares selling.

Just not sure just to sell or just to press price.

6 days ago

goldenhope

No worry, PNB major shareholder

6 days ago

RJ87

ini part of PNB plan or PNB no renew manipulators contract? That's why manipulator dumping.

6 days ago

Macgyver111

Armada doing good
Perdana doing good
Velesto after pay dividend...meow! Meow!
Tapi walau mcm mana pun...sabaaaaar!

6 days ago

specializedvenge

Drop 10% like one naga has sunken.
Drop a lot for no reason.

6 days ago

CT888

any news of sunken Naga??

6 days ago

Macgyver111

Sunken naga issue already settled la..you dlm coma ke selama ni..

6 days ago

NinjaInPyjamas

Doesnt seem revenue and profit affected. DCR should remain elevated or move higher. The margin of safety is the value of their rigs. Even China cannot build that cheap

6 days ago

RJ87

Yesterday move, really hv to study what’s going on. Not very natural activity.

6 days ago

hzboi

yesterday 230milion volume down... today limit up at open with merely 4 million buy. I hope its shark change of hands.

6 days ago

ITreeinvestor

upcoming quarters will be badly hit by 4 rigs Planned shutdown in Y24Q3-Y25Q1
Contract end for Naga 3 & 5 soon.

6 days ago

ITreeinvestor

Price will be slowly downtrend in coming 6 to 9 months to reflect the events above.

6 days ago

Macgyver111

All 4 rigs not going for periodical survey at one time..make sure clarified clearly. It scheduled carefully one after another...maybe small significant effects as DCR already revised to usd 120 and above by Petronas. Current oil also favourable

6 days ago

Macgyver111

Actually only 3 rigs. They're still profitable as DCR increased..

“At least three of our rigs, namely NAGA 2, NAGA 5 and NAGA 6, are expected to commence their five-yearly Special Periodical Survey in 2QFY2024, 3QFY2024 and 4QFY2024 respectively,” it added.

6 days ago

Macgyver111

If they shut down 3 or 4 rigs at one time.. of course, they will be run loss. But I don't think Velesto has such stup.....d management to plan in such a way

6 days ago

ITreeinvestor

its 4 rigs. and yes, it will not going to shutdown all at once hence this will drag down earning for continuosly 3 quarters.

while during that shutdown mess, naga 3 & 5 will be out of contract.

"" please refer to Kenanga Report in May24 ""
However, in 2HFY24, Naga 2, Naga 5, and Naga 6 are scheduled for special periodical surveys (SPS).

Except for Naga 3 which is set for SPS in 1QFY25

6 days ago

Rwan88

Kenanga still target 0.34sen on May2024. Not much affacted by SPS

6 days ago

tankahban123

https://www.marketwatch.com/investing/future/cl.1 crude oil future is more than 80 usd per barrel

6 days ago

biginvestor

The new IDRIS HYDRAULICS. Big volume everyday, no movement

6 days ago

KarmaS

continue to move lol

5 days ago

Macgyver111

The data center theme is over. All the big sharks will jump to other counters soon, especially energy...

5 days ago

Macgyver111

If 2morrow can break 0.245, then good sign of upward trend. PNB won't let the price plunge down...

5 days ago

leeabraham

anyone know why the selldown in past few days?

5 days ago

RJ87

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.

5 days ago

tankahban123

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.

4 days ago

Squirtle

Weak hand is all folded liao
Final table set

4 days ago

Macgyver111

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.

4 days ago

Macgyver111

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...😁😄

4 days ago

Macgyver111

Hopefully PNB can close the gap..

4 days ago

Macgyver111

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.

4 days ago

Rwan88

Good sign

3 days ago

RJ87

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

3 days ago

EAGLE

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

3 days ago

Macgyver11

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

2 days ago

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