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Overview
Financial Highlight
HeadlinesBusiness Background Velesto Energy Berhad, previously known as UMW Oil & Gas Corp Bhd, is a multinational provider of drilling and oilfield services for the upstream sector of the oil and gas industry.
The company's line of products and services include drilling and workover services for exploration, development, and production of wells in Malaysia and southeast Asia through several offshore drilling rigs and hydraulic workover units. Under the oilfield services segment, the company offers threading, inspection, and repair services for Oil Country Tubular Goods in various offshore markets. Operating revenue is primarily derived from drilling services, which includes ownership and operation of several drilling rigs and hydraulic workover units, or HWUs. Rigs and HWUs are chartered through day-rate-based contracts.   Macgyver11 Crude oil bounced strongly. I don't think tomorrow can drop further. If drop then good time to collect more. Banking crisis calmed down as per today news. But investors still worried the aftershock will put bursa remained at bottom for time being. 20/03/2023 9:21 PM Macgyver11 Goldman Sachs has already revised its oil price forecast for the rest of the year. Previously expecting Brent to hit $100 in the second half, now the investment bank expects the international benchmark to only rise to $94 per barrel in the coming 12 months. For 2024, Goldman analysts see Brent crude at $97 per barrel. “Oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows,” Goldman said in a note last week, as quoted by Bloomberg. “Historically, after such scarring events, positioning and prices recover only gradually, especially long-dated prices.” Indeed, as far as events go, this one left a serious scar. Brent crude went from over $80 per barrel to less than $75 per barrel, and West Texas Intermediate slipped down close to $65 per barrel. And this happened while authoritative forecasters such as the IEA and OPEC recently said they expect stronger demand growth than supply growth. Even though Goldman Sachs revised crude oil price yet it still at high side...usd 97. Anything (crude oil) above usd 60 already good enough to generate income for o&g counters. Usd 97 is excellent 21/03/2023 8:31 AM Macgyver11 Goldman Sachs has already revised its oil price forecast for the rest of the year. Previously expecting Brent to hit $100 in the second half, now the investment bank expects the international benchmark to only rise to $94 per barrel in the coming 12 months. For 2024, Goldman analysts see Brent crude at $97 per barrel. “Oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows,” Goldman said in a note last week, as quoted by Bloomberg. “Historically, after such scarring events, positioning and prices recover only gradually, especially long-dated prices.” Indeed, as far as events go, this one left a serious scar. Brent crude went from over $80 per barrel to less than $75 per barrel, and West Texas Intermediate slipped down close to $65 per barrel. And this happened while authoritative forecasters such as the IEA and OPEC recently said they expect stronger demand growth than supply growth. Even though Goldman Sachs revised crude oil price yet it still at high side...usd 97. Anything (crude oil) above usd 60 already good enough to generate income for o&g counters. Usd 97 is excellent 21/03/2023 8:31 AM pang72 Ambar Warrick Investing.com-- Oil prices fell in early Asian trade on Tuesday, cutting short a brief rebound from 15-month lows as markets hunkered down before a Federal Reserve interest rate decision this week, while concerns over a banking crisis continued to spur cautious trading. 21/03/2023 10:23 AM miracle_trader run while u still can. if next qr report another losses,then gg. the management is weak 21/03/2023 10:24 AM Macgyver11 Someone keep on posting old news about oil price to tarnish the velesto credibility and reputation...come on guys, aren't you got better things to do. 21/03/2023 1:14 PM Macgyver11 Crucial moment for Velesto and brent..go up or go down. Entire i3 members waiting thrillingly. Hope for the best. 21/03/2023 1:21 PM BobAxelrod33 Holy shittt!!.... you're 10x over your head in this one......hahahahaha 21/03/2023 1:44 PM Macgyver11 All the manipulating guys who tried to tarnish this counter will go for hibernation temporary... 21/03/2023 5:58 PM Macgyver11 https://www.youtube.com/watch?v=Mm6bX_W6CCk Some info about future oil market..seems more relevant. Good to listen. 21/03/2023 9:50 PM Lewis Lee I lost confidence with this company already.... they have valuable assets (7 rigs ) but not the management / brain to capitalize on that, what can you say ?? I worry they might continue to deliever loss or peanut profit ..... AS suggested by one analyst, sell off their rigs and invest in something else flashy like EV etc ! then only can the price shoot up to RM1 !! lol 22/03/2023 10:43 AM Bon888 The latest contract rate not fully reflected in the QR result. Wait for another 2 QR, if still not making any money then you sell it off. 22/03/2023 2:02 PM miracle_trader if wait another 2 QR still peanut profit or lose money, that time u sell of will be at 10 cent 22/03/2023 8:30 PM Bon888 Jack-up daily charter rate (DCR) of just US$67,000 (RM284,750) per day in the 2020 has risen to as high as US$100,000 to US$130,000 (RM425,000 to RM552,500) per day. Like that also can't make money, I speechless. 22/03/2023 11:53 PM Macgyver11 It will run side way for temporary until the 1st qtr out. 1st and 2nd qtr will decide Velesto fate. Let hope for better result in up coming qtr. 24/03/2023 12:09 PM Macgyver11 I assumed velesto should return to black in 1st qtr after considering this... 1) Usd 135mil (RM 640mil) contract from Hess. This contract commenced on 4th qtr 2022 until 4th qtr 2024 ( 2 years contract). Velesto assigned Naga 5 to extract 14wells in North Malay Basin. 2) Short term contract for Sarawak ROC worth usd 14mil. Commencing date from 25 January until mid-June 2023. Naga 2 already assigned for this project. 3) Plug and abandonment (P&A) project for Petronas at Tembungo A and Tembungo B. This contract expected to contribute 60mil. Contract commenced on may 2022 until January 2024. Extension option for Tembungo B another 1 year (January 2024 to Dec 2024) 4) Contract for Exxon Mobil start 3rd qtr 2022 to 3rd qtr 2023. GAIT 6 deployed for this contract. Amount of this contract not declared as this contract based on call-off principles. 5) The rest of of rigs work for Petronas based on " on-call" basis. Rigs utilisation for year 2022 - 62% Rigs utilisation for year 2023 - exceeded 80% DCR increased from usd65,000-usd70,000 to usd85,000 to usd 100,000. Based on above if still can't make money...I'm also speechless like you all. 24/03/2023 3:13 PM trade74 @Macgyver11 - thanks for the comprehensive analysis. The next QR will be excellent... March is seasonally bearish month...do expect price to come down... 24/03/2023 3:30 PM Macgyver11 After a major decline that saw oil prices fall to multi-year lows, oil markets appear to have bottomed out and begun an encouraging ascent higher. Over the past two weeks, a general bearish and risk-off sentiment cut across asset markets and triggered a lengthy unwind of speculative positions in oil futures. A top commodity analyst blamed the unusually steep decline to significant selling by banks in response to gamma-effects as prices closed in a concentration of producer puts around USD 75/bbl for Brent and USD 70/bbl for WTI crude. Luckily for the bulls, in the current week, oil prices have staged a remarkable turnaround, with Brent climbing from a two-year low around $70 per barrel on Monday to USD 77.20 per barrel on Thurday’s intraday session while WTI has recovered from around $63 per barrel to $71.20 over the timeframe. That’s a nearly 10% rally in the space of just three days. And now commodity experts at Standard Chartered are saying that the path of least resistance for oil prices at this point is higher, not lower. Previously, the analysts had said that the unwinding of speculative length appears to be complete at this juncture, thus lowering selling pressure, but had warned that prices might retest the lows if the FOMC hikes its policy rate by more than the widely expected margin of 25bps. Related: Spain Calls On Importers Not To Sign New LNG Deals With Russia Thankfully, the markets have successfully scaled that wall of worry after the Fed’s hike on Wednesday came in-line with expectations. The Fed also indicated that the current rate hike cycle is nearing an end. Fast Recovery It gets better for the bulls: StanChart expects last week’s gamma effects to reverse course with banks buying back positions thus reinforcing the short-term rebound. Beyond that, StanChart says oil prices will largely be dictated by OPEC’s and consuming countries’ strategic inventory policy shifts. Specifically, the experts have predicted the current surplus will persist till early Q2; however, they expect the rest of the year to be in a modest deficit. Source: Standard Chartered Research StanChart is not the only oil bull here. Goldman Sachs' Jeffrey Currie has acknowledged that the unexpected banking crisis has soured the macroeconomic outlook significantly and weighed heavily on oil prices, calling the situation a "big, scarring event." Still, the analyst expects prices to rally from here, and has only lowered his 2023 end-of-year target from $100 to $94 a barrel. According to Currie, fundamentals in the oil markets remain largely unchanged thus supporting the previous bull case. He has pointed out that key physical indicators, such as refining margins and time spreads, have remained stable, a positive sign that in-use demand remains strong and is likely to continue driving the physical market higher. Currie has also argued that the banking crisis will only have short-lived effects but very limited impact over the long-term, "I think the key message here is fundamentally we haven't seen a big significant shift," he said. "Physical markets are going to have to drive this market higher." However, he has warned that the turmoil will result in a "... a longer path forward." Hedge fund manager Pierre Andurand of Andurand Capital is not a mere bull but an ultra-bull: Andurand has predicted that crude will hit $140/bbl by the end of the year. Just like Currie, Andrurand argues that the recent oil price crash due to banking jitters was purely speculative. Further, he expects crude oil demand to peak around 2030, but "even when we peak, oil demand won't fall down so fast. We will reach peak demand towards 110M bbl/day and then a slow decline from there." Oil and gas stocks have also been surging higher in tandem with the commodities they track: the energy sector’s benchmark, the Energy Select Sector SPDR Fund (NYSEARCA:XLE), is up 4.1% since the beginning of the week. After posting record profits for two straight years amid high oil and gas prices, earnings for the energy sector are only expected to decline modestly in the current year compared to other market sectors. Late last year, a Moody's research report projected that industry earnings will stabilize overall in 2023, though they will come in slightly below levels reached by recent peaks. The analysts note that commodity prices have declined from very high levels earlier in 2022, but have predicted that prices are likely to remain cyclically strong through 2023. This, combined with modest growth in volumes, will support strong cash flow generation for oil and gas producers. Moody’s estimates that the U.S. energy sector’s EBITDA for 2023 will clock in at $585, good for a modest 6% decline from 2022 levels. Valuations in the oil and gas sector also remain low despite two years of strong rallies with many energy and gas stocks trading at large discounts to the market. 25/03/2023 6:25 AM Bon888 This should be the best year for Velesto since change name from UMW OnG to Velesto. Still can't make money this year, can sink all the Nagas and fire all the top management. 27/03/2023 12:15 PM Macgyver11 Manulife wins most top categories in bursa award recently..... Manulife Investment Management (M) Bhd had one of its best years at the Refinitiv Lipper Fund Awards 2023. The firm clinched three group awards — Best Equity Group (Malaysia), Best Mixed Assets Group (Islamic) and Best Bond Group (Provident) — and bagged five fund awards. The winning funds were in Lipper’s Conventional universe and Islamic universe. The firm clinched the awards for Best Equity Malaysia in the three-year category, Best Equity Malaysia Small & Mid Cap in the three- and 10-year categories and Best Mixed Asset MYR Flexible in the 10-year category. 27/03/2023 12:28 PM Macgyver11 Among five favourite stock for Manulife this year as below:- The top five holdings of the fund were Dayang Enterprise Holdings Bhd (3.6%), Bank Islam Malaysia Bhd (3.1%), Padini Holdings Bhd (3.1%), Velesto Energy Bhd (3%) and Genetec Technology Bhd (2.9%). 27/03/2023 12:30 PM Macgyver11 Manulife one of the best fund manager that select carefully what they invest. They won't invest blindly unless there's good return in the stock that they holding. Let's hope for best.. 27/03/2023 12:34 PM BobAxelrod33 MacG kena hit on his heat by Velesto rusty nails, anchor and rotting rubbish....cannot help himself anymore. 27/03/2023 12:47 PM Macgyver11 Hahaha. Tq. Those not interested better leave I suggest. Why you wasting time here as I believed you are professional investor. Normally professional investor won't wasting time putting negative comments....bcoz time is gold. Data speak loud. BobAxelrod33 MacG kena hit on his heat by Velesto rusty nails, anchor and rotting rubbish....cannot help himself anymore. 27/03/2023 1:12 PM Macgyver11 I earned tons of money from velesto in previous trading...otherwise I wont here for what wasting time if there's no future in stock we hold... 27/03/2023 1:14 PM Macgyver11 US14 bil deal signed in O&G? See if oil future is uncertain, they won't invest such a hugh fund into o&g field. Yesterday Saudi Aramco said they will invest 10bil in Chinese refinery plant. Today Brookfield. As oil sector deal-making starts to show signs of recovery, Brookfield Renewable Partners will acquire Australia’s Origin Energy utility for over $10 billion, while the Permian basin has scored another victory with a $1.45-billion asset sale. On Monday, a consortium led by Brookfield said it had agreed to acquire Origin (OTCPK:OGFGF) in a $12.4-billion deal, including debt. 28/03/2023 6:24 AM Macgyver11 It's time to refill the SPR. Once this guy start to refill the SPR, it will trigger the oil price higher. Selling SPR is the biggest mistake that Joe Biden done, Saudi already warned him... There is a narrative that I hear from time to time that President Biden made billions of dollars for the country by selling oil from the Strategic Petroleum Reserve (SPR) last year at high prices and buying it back at low prices. The only problem is that the story is only half true. The Biden Administration did indeed sell a lot of oil from the SPR last year. Further, oil prices in 2022 were the highest they had been in years, averaging nearly $95 a barrel — the highest level since 2013. However, the Biden Administration hasn’t bought back any of the 266 million barrels of oil that have been removed from the SPR since his inauguration. If Biden wants to legitimately receive credit for successfully playing as an oil speculator, then he needs to put the oil back. Right now, all he has done is deplete oil reserves that were built up under several previous administrations (Democratic and Republican). Previously, the Biden Administration had resisted calls to refill the SPR, citing high prices. In October, with oil prices still above $80, the administration announced it would set up a process to refill the SPR when oil was priced between $67 and $72 a barrel. As Bloomberg energy and commodities columnist Javier Blas pointed out on Twitter, the entire futures curve for West Texas Intermediate (WTI) is now below that range: “The whole WTI futures curve is now below the bottom range of $67-$72 a barrel given by the White House to buy crude for the SPR. That’s the **whole curve, including the contract for immediate delivery**. Let’s see if the Biden administration pulls the trigger.” Of course, the public loves low oil prices. Last year’s massive SPR release probably helped arrest the spike in oil prices. The risk of buying back that oil is that oil prices may stop falling. But, not refilling the SPR leaves the U.S. with a significantly lower insurance policy against any oil supply disruptions. This would seem to be an opportune time to put at least some oil back into the SPR, while claiming credit for selling high and buying low. 28/03/2023 6:35 AM pang72 Let's dig more oil to counter EV car.. Haha.. The battle of EV car vs combustion engine car.. 29/03/2023 9:41 AM pang72 Hiding behind president Putin for oil and PNB in VELESTO shld able to save my backside being burn in crisis time 29/03/2023 10:07 AM Bon888 OnG industry is booming now. Once in a decade opportunity, don't missed it! 29/03/2023 10:11 AM pang72 https://www.sinchew.com.my/20230329/%e5%8d%8a%e6%97%a5%e9%a9%ac%e8%82%a1-109/ Macam Betul wo.. Bank and oil up... 29/03/2023 1:14 PM  | |
