The company's second-quarter earnings rose 270% year-on-year to RM63mil.
PETALING JAYA: Velesto Energy Bhd
’s noted the high utiltisation of its rigs on contracts boosted income and earnings of the company for the second quarter ended June 30, 2024 (2Q24), but warned its second-half performance (2H24) could be weaker.
Revenue for the quarter increased 41% year-on-year to RM393mil while earnings rose 270% year-on-year to RM63mil or earnings per share (EPS) of 0.76 sen.
Year-to-date revenue increased to RM732mil (29% higher) while earnings totalled RM110mil (244% rise) or an EPS of 1.33 sen.
The group has declared an interim dividend of 0.25 sen per share, to be paid on Nov 28 to shareholders registered at the close of business on Oct 30, 2024.
Velesto’s president Megat Zariman Abdul Rahim said, “We are proud to report another solid quarter backed by higher earnings due to higher utilisation at 98% and higher average daily charter rates at US$115,000 per day during the quarter.
“Our progress on the iRDC project within the Integrated Services segment also contributed significantly during this period, demonstrating our commitment to excellence and the trust our clients place in us.”
Velesto noted utilisation is expected to be lower in 2H24 as three of its rigs, Naga 2, Naga 5 and Naga 6, will be conducting their five-yearly mandatory special periodical survey.
It expects its utilisation to remain high in 2025 as Naga 2, Naga 4 and Naga 6 have been contracted up to 1Q26 and Naga 8 up to 4Q25.
Velesto added utilisation of jack-up rigs continues to be strong as 93% of marketed rigs are currently contracted globally. Its order book stood at RM1.3bil as at July.
