VELESTO (5243): Nomination Committee Members

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

3 weeks ago

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

3 weeks ago

leeabraham

anyone know why the selldown in past few days?

3 weeks ago

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.

3 weeks 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.

3 weeks ago

Squirtle

Weak hand is all folded liao
Final table set

3 weeks ago

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.

3 weeks ago

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...😁😄

3 weeks ago

Hopefully PNB can close the gap..

3 weeks ago

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.

2 weeks ago

Rwan88

Good sign

2 weeks ago

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

2 weeks ago

EAGLE

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

2 weeks ago

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

2 weeks ago

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

2 weeks ago

Noted. Thks bro.

2 weeks ago

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-----

1 week ago

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.

1 week ago

Bloody Petronas---only "Eat" Kampong Boys

1 week ago

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! 😣😞

1 week ago

madakiman

Because technical support at 0.22?

1 week ago

bhza2012

Hoyoo.. apa citer velesto. Turun lagi

1 week ago

Just bite the bullet I guess.

1 week ago

leeabraham

what going on ?

1 week ago

Rwan88

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

1 week ago

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.

1 week ago

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

1 week ago

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

1 week ago

Goodwill5

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.

1 week ago

Michael Kwok

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).

1 week ago

Goodwill5

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

1 week ago

bosskubakery

velesto boleh !

1 week ago

paperhand123

64 sen gogogo

1 week ago

mikeann

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

1 week ago

VeneerWood

HLIB tells investors to buy Velesto on weakness 😆

https://theedgemalaysia.com/node/717662

1 week ago

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.

1 week ago

DividendGuy67

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.

1 week ago

DividendGuy67

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.

1 week ago

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

6 days ago

hzboi

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.

6 days ago

Goodwill5

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

6 days ago

Skywalker00

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

5 days ago

VeneerWood

because of uncontrollable jockeys, may be

5 days ago

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

4 days ago