Much better for new management to declare a one-time big loss. Kitchen-sinking. Then start again sooner... on a new trajectory. Don't worry, analysts do not know everything...

Yeah CNY party.. Brent crude up again, now passed USD60. OPEC will implement production cut by Q2 this year?

Latest results only for Q2. Recent contracts not properly kicked in yet.

If you read today's article in The Edge, 1 year ago the prediction was for Velesto to have a loss of -RM140mil for FY2018. But now projection is revised to a net profit of RM12.3 mil for FY 2018. A big swing.

Qtr 1 was a net profit of RM5mil.

Bottomline nos are much better. Out of the woods?

http://www.theedgemarkets.com/article/og-profits-under-spotlight-signs-real-recovery

The announcement for the new RM101mil contract from Shell was released late last Friday. New contract and new rates. UMWOG is turning.

http://m.thesundaily.my/node/567306

This is finally the tipping point for Velesto.
The favorable court judgement plus new contracts and new contract rates impending.
A short window to collect at 30sen.

With Brent in usd70-80 range, things are looking better for next few years, compared to the last few years. Umwog back to profits territory.

Umwog price is still stagnating, maybe due to overall anxiety of foreign funds to Malaysian Govt's rm1 Trillion debts. But similar to companies - all new Management taking over, will quickly write off and make all bad provisions first upfront. So it's clear they've no part of that past problems.
But most of the additional rm190 Bn of Govt guarantees, are just guarantees. New Govt is already cancelling ecrl, my hsr, pan borneo highways, TRX, maybe Mrt Line 3 too and even cancelling and reviewing some PFI projects. I suppose those are the likes that needed guarantess anyway.

MAY 24, 2018 @ 6:12PM 
BY BERNAMA

KUALA LUMPUR: Velesto Energy Bhd, formerly known as UMW Oil & Gas Corporation Bhd, returned to the black in the first quarter ended March 31, 2018, with a net profit of RM4.87 million compared with a net loss of RM104.92 million recorded in the same period last year.

The improvement was mainly due to higher rigs utilisation and a net foreign exchange gain of RM18.2 million, the oil and gas services provider said in a filing with Bursa Malaysia today.

Revenue, meanwhile, rose to RM121.76 million from RM74.28 million previously.

The company said both the drilling services and oilfield services segments reported higher revenue as a result of higher rigs utilisation and an increase in threading activity in China.

“The group is presently focusing on securing more contracts and improving operational efficiency.

“The potential improvement in both utilisation and operating cost is expected to contribute positively to the financial performance of the group for the financial year 2018,” it added.

Brent has been steadily rising for past 9 months. Passed usd70 again today. If we ignore the noises here and there, the Macro trend indicating a return to a new normal.
At macro level, only logical to expect Umwog to do 2 things. 1st to achieve full rigs utilization, maybe by 2019. 2nd, this Velesto Energy to embark on a new business stream to gradually diversify from its current upstream of o&g core. Or else Pnb wouldn't have committed rm1.8 Bn. Pnb needs to retain a key vehicle in o&g.

Tp 40sen to 50sen in 2019 is mundane, but seems like a safe bet.

Wow it touched 37sen briefly.

Offshore and araj87 sounds more like an employee or ex-employee of Umwog..? Hopefully you're not disgruntled parties.