Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.

According to the last reported balance sheet, Velesto Energy Berhad had liabilities of RM427.3m due within 12 months, and liabilities of RM236.4m due beyond 12 months. On the other hand, it had cash of RM159.7m and RM424.8m worth of receivables due within a year. So it has liabilities totalling RM79.3m more than its cash and near-term receivables, combined.
Of course, Velesto Energy Berhad has a market capitalization of RM2.26b, so these liabilities are probably manageable. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward.
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
Looking at its net debt to EBITDA of 0.45 and interest cover of 5.4 times, it seems to us that Velesto Energy Berhad is probably using debt in a pretty reasonable way. But the interest payments are certainly sufficient to have us thinking about how affordable its debt is. Notably, Velesto Energy Berhad's EBIT launched higher than Elon Musk, gaining a whopping 937% on last year. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Velesto Energy Berhad can strengthen its balance sheet over time.

Velesto Energy Berhad had debt of RM350.3m at the end of March 2024, a reduction from RM565.6m over a year. However, because it has a cash reserve of RM159.7m, its net debt is less, at about RM190.6m.

Wow! RM1.25 trillion worth of GOLD. Imagine if Minetech JV with Indon-company to harvest gold....kaya lor.

The Sarawak government had announced that it will carry out a full geological mapping of Sarawak in search of more precious minerals, after discovering about RM1.25 trillion worth of gold, rare earth, and other precious metals and mineral in 32% of the land that has been mapped.

Another good news as Minetech currently working on Selinsing Gold Mine Project contract for a further 36 months, valued at RM230mil for waste removal, ore deliveries and associated works for open pit mining.

https://www.thevibes.com/articles/news/102645/indonesiakeen-to-work-with-sarawak-on-mining-metals-minerals
https://www.thevibes.com/articles/news/102645/indonesiakeen-to-work-with-sarawak-on-mining-metals-minerals

Yes that's true, 19 July. Sarawak took over Affin bank. Easy loan available for Minetech..why want to do right issue, share consolidation and etc etc. More good news rather than bad.

The price hike due to market sentiment react to data center is over.
To further increase the price to the next level, DFX requires an announcement on contract bidding related to DC. Hope there's something soon....

Sometimes Velesto really tests our limits. But I always persuade myself by saying, 'No matter is their day, tomorrow might be Velesto's day.' I still believe (no doubt on that) that once it starts giving you, it's going to be unlimited.
Question is when????
Sabar.Cool 😎

Very good..drop we buy more add in.

I think Aiezatt Syamir (the last person that list under SIS) is either a direct family member or a close friend of Abang. He is the owner of an investment company, if I'm not wrong.

It's a good sign indeed...you can see clearly Abang effort to up lift the company performance. Hold tight.

Share Issuance Scheme means a scheme involving allotment and issuance or transfer of shares and/or grant of options, whether physically settled or otherwise, to subscribe for or purchase shares of the Company to eligible Directors, Officers and/or employees.

Hahaha! I like this...
Yes "HOLD TETAP HOLD"

Salahuddin Ahmad

HOLD TETAP HOLD

Naysayers will keep on doing their job. They're paid to do so. I enjoyed reading their comments.😁😀.

Hold tight, time will come. Some taking profit for penny cents...biasalah. 2nd contract worth 16mil, not a big amount but still good enough and reflect abang izzarin continues effort to turn minetec into profitable company soon. Mark my words, more good news to come this year and next year..🚀🚀🚀🚀

Just to remind you guys, incase...

1st contract

The Board of Directors of Minetech is pleased to announce that Minetech Construction Sdn Bhd (“MCSB”), a wholly-owned subsidiary of the Company has on 31 January 2024 entered into an agreement with Able Return Sdn Bhd [Registration No. 200101013874 (549631-D)] and Damar Consolidated Exploration Sdn Bhd [Registration No. 199101019355 (229692-V)] in connection with the renewal of contract for waste removal, ore deliveries and associated works for open pit mining in respect of Selinsing Gold Mine Project for a further period of 36 months commencing from 1 January 2024 to 31 December 2026 with an estimated total contract value of approximately RM230 million (“Contract”).
 
2. Financial Effects
 
The Contract is expected to contribute positively to the revenue, earnings and net assets of the Company and its subsidiaries (“Minetech Group” ) for the financial year ending 31 March 2024 onwards to 31 March 2027

2nd contract

The Board of Directors of Minetech Resources Berhad wishes to announce the press release entitled : Minetech Resources secures RM16.1 million contract from Mah Sing Group for M Nova Project.

I believed the first contract (230mil) already give them positive earning after the financial year ending 31 March 2024 onward (as per statement above). Second contract, even though small (16mil) but it all about reputation, building good relationship with Mah Seng group (if they can execute it efficiently).

Wow! Petronas paying them DCR usd 140,000. I strongly believed they going to come out with excellent 2nd qtr result. 🚀🚀🚀

KUALA LUMPUR (July 3): Hong Leong Investment Bank (HLIB) has advocated investors buy Velesto Energy Bhd (KL:VELESTO) on weakness, in anticipation of strong earnings in the coming quarters amid persistent jack-up (JU) rig crunch in Southeast Asia.

In a technical tracker note on Wednesday, the research house said that for the second quarter of financial year 2024 (2QFY2024), it expects Velesto’s JU rig utilisation to remain above 90%, with full-year utilisation projected at 85%, slightly higher than FY2023’s 83%.

“Additionally, the renewal of the umbrella contract with Petronas Carigali, featuring a higher daily charter rate of approximately US$140,000 (RM660,766) — up from US$100,000 — will contribute positively to Velesto’s earnings from 2Q2024 (second quarter of 2024) onwards.

“We project Velesto’s earnings to surge 89% in FY2024, with an additional 9.6% increase in FY2025.

“All in, we maintain a 'buy' call on Velesto, with a target price of 35 sen,” it said.

HLIB said that technically, Velesto is trading near its long-term support region of 25 sen to 27 sen with indicators showing uptick bias.

“A successful breakout above 28.5 sen will signal a new uptrend and spur the price toward 30 sen-32 sen-34 sen levels.

“Cut loss at 24.5 sen,” it said.

After this I hope we can see more contract winning. 🚀

I feel like still not fundamental yet..velesto price rise due oil price sentiment. Hv to wait till 2d qtr.

We don't know what in Abang mind bcoz I'm not a telephatist either and don't judge him too. "Don't judge a book by its cover"

You guys must remember this, the money that Abang pours into Minetech does not belong to him alone. It is similarly like a joint venture (from every family members). It's possible that our Sarawak boss also played a role. Normally this is how things work...so Abang responsible for them..you fikir lah sendiri.

Wow! 0.15 now 😁

Wow! So many telephatist here...can read Abang mind..LOL. All hired to said so..haha!.

Awang daud is an experienced guy. Serba's value increased from a penny stock to an all-time high thanks to him. Those days, Serba was one of the favorite stocks for many investors.

Not fading, second round coming soon..buckle up.

If you want to pull the crowd..you hv to say something...🤣😂

Dont use your crystal ball theory to predict the future of stock market...wondering why you still here wasting time pretending helping others. Time is valuable, use it to analyse and make money for your own.

Dream. I know you're already disposed your shares, now finding way how to collect bellow 0.10...nice try helang...hahaha!

All the way to 0.40..

So many sanguine analysis on Minetech...a bit of negative comments won't downgrade it at all.

Hahaha! Don't buy what they just said. Some hired by IB, some hired by sindiket. This is the only way to collect cheap tickets, so just enjoyed read their comments and stick with plan.

Abang Abdillah in right track..doing the same.

Companies change ownership, this is what normally they will do..

1st. BOD recruited new management staff or restructured the organization (done)

2nd. Change the company name (done).

3rd. Ensure that their balance sheet is cleaned up (ongoing)

4th. Bidding, promotion, and other activities are taking place for new contracts.

5th. Media/IB start to do coverage. By this time you won't get the same price as now.

This is from my past experiences when I bought this kind of stocks, changed in ownership

CGSI Research said Velesto’s rig schedule suggests that it could hit over 90% utilisation in FY25.

PETALING JAYA: Velesto Energy Bhd is building strong earnings visibility for its financial year ending Dec 31, 2025 (FY25) and FY26, says CGS International (CGSI) Research.

The research house said Velesto’s latest rig schedule suggests an 82% rig utilisation rate for FY24, given all six of its jack-up rigs have already locked-up their contracts, with potential to rise above 90% in FY25, and at least 85% in FY26.


As Velesto is bidding for FY26 work in today’s high daily charter rate (DCR) environment, there is potential to sustain high profitability for the next three years, it noted.

“The key uncertainty is for second half of this year (2H24), where Velesto will send three of its rigs (Naga 2,

“Naga 2 is contracted to drill for PETRONAS Carigali Sdn Bhd (PCSB) from Oct 2024 to Feb 2026; Naga 4 will drill for PCSB from Sept 2023 to Feb 2026; Naga 6 is contracted by PCSB from Dec 2024 to Feb 2026; while Naga 8 has been drilling for Carigali Hess since July 2023 and will continue until Oct 2025,” it said.The research outfit, however, pointed out that big gaps in the FY25 schedule are for Naga 3 and Naga 5.

But, citing data provider Riglogix, CGSI Research said Naga 3 may work for Indonesia’s national oil company PT Pertamina for two years commencing April 2025, while Naga 5 may drill for PTT Exploration and Production in Malaysia for two years commencing Dec 2024.

https://www.thestar.com.my/business/business-news/2024/06/28/strong-earnings-visibility-forecast-for-velesto

I think data centre theme not yet over..just get started (in warm up stage) and still got room to spike up, hopefully.

Some institutional take profit last couple weeks including HL bank, Manulife, Fidelity and etc. I saw some new IB (foreign bankers), take this opportunities and buy in during price drop. Hope price will rise back after this.

Minetech going to be big winner in near future..there's possibility for limit up. Buy hold and forget for time being, later you'll be rewarded...my 2c

Look at some big projects that Irix involved previously..

1) The SEA-H2X is a new submarine cable system connecting Hong Kong SAR China, Hainan China, Philippines, Thailand, East Malaysia and Singapore, with options to extend to Vietnam, Cambodia, West Malaysia and Indonesia. 

2) Sarawak-based telecommunications company, irix, which is the corporate brand identity of PP Telecommunication Sdn Bhd, today launched its 700km Batam Sarawak Internet Cable System (BaSICS) and Tier IV Data Centre (irix DC), heralding the beginning of a new era in improved internet connectivity for all Sarawakians and residents of Borneo.

And many more. Irix also experts in Data centre. Minetech, Irix, scib and BJland...all collaboration.

Abang Abdillah is capable of making IRIX (formerly known as PP Telecommunications) a successful company, and I am certain that he will turn Minetech into a profitable company too...just you need patience and hold to harvest later.

Apple2353
see ! Eagle is no more here already.. sarawakian also cabut

Doomstock = Eagle
😂😁

It is not a question of reaching bottom or price falling, it is running flat. Normally, mid-to-long-term investors see like this...before it reaching the next level. For untrained eyes, they see zig-zag patterns. For short traders, they will make noise...lousy stock lah, go Holland lah and so on.

Hai! Bucket pulak..basket

I know you guys frustration. You guys maybe miss lot of opportunities in Data centre counters that recently emerged hot..go all time higher. Smart said, don't put all your eggs in one bucket. I used to kept some spare money to use during this kind of bull run. But believed me, Velesto will erupt suddenly without notice..happened before. For those who follow veleslow for long period will know the real story. Patience sabar.

Microsoft already bought the land..work in progress now.

Ya kah. How our PM informed you ke..🤣😂

Notion just received UMA enquiry from bursa bcoz shares price hit high...maybe that's the recent pullback today.

Pak tua pun ada collect di sini..I lega skt. Percaya sama pak tua..😂

After the profit taking, hopefully DC theme resume back tomorrow.