Wow!! Brent usd 81 now..huat!!. 0.55c on the way

Wow! Brent usd 81 now. 0.20c mari

Fusion energy ha...lol!

https://www.malaymail.com/news/malaysia/2022/12/11/clear-skies-for-aviation-sector-as-malaysia-other-countries-reopened-borders-this-year/44660

https://www.malaymail.com/news/malaysia/2022/12/11/clear-skies-for-aviation-sector-as-malaysia-other-countries-reopened-borders-this-year/44660

https://finance.yahoo.com/news/russia-may-cut-oil-output-134709319.html

Putin says will cut oil production and won't sell oil to G7 countries that imposed price cap over Russia. This could easily drive the oil price to upwards...let see

Russia second largest oil exporter after Saudi and also one of Opec+ member.

https://finance.yahoo.com/news/russia-may-cut-oil-output-134709319.html

Putin says will cut oil production and won't sell oil to G7 countries that imposed price cap over Russia. This could easily drive the oil price to upwards...let see

20 legacy stocks outperformed the market
In the current environment, investors generally prefer large-cap stocks. However, the performance of the 20 small-cap bead stocks researched by RHB still outperformed the market.

In May of this year, since the bank launched the "20 Small Capital Beads of 2022", although the external market is uncertain and the market is extremely volatile, the value-weighted return of the 20 small capital beads exceeds 20%. During the same period, the FTSE 70 The MidCap index fell 2.7 percent and the FTSE SmallCap index lost 5.9 percent.

Among the 20 small-cap legacy stocks, losers and winners were divided equally; the winners were oil and gas, healthcare, consumer and industrial stocks.

Analysts also pointed out that what is more interesting is that the MSCI Malaysia Small Cap Index is at the same level as the MSCI benchmark index. In Japan, Singapore and Thailand, the MSCI Small and Mid Cap Index has also seen a similar upward trend in valuation.

With that in mind, analysts say investors should continue to pick stocks for the next year on the alpha factor, a measure of investment risk, deployed based on current below-average valuations.

“We recommend an evergreen strategy, that is, building a portfolio that is strong over the long term and that returns after incorporating risk.”

Analysts believe that in the quantitative tightening cycle, although the rotation play will continue, and any excessive valuation will attract arbitrage activities, valuable stocks should take center stage.

He added that assuming that U.S. inflationary pressures ease further, allowing the Fed to ease its rate hike cycle, and China gradually unblocks, the market may be more optimistic. It is a positive factor other than local political stability and strong consumption that can support the local economy.

In addition, as the ringgit regained momentum, foreign capital flows into Malaysian stocks resumed.

Optimistic about consumer healthcare, medical logistics, oil and gas
Analysts recommend that investors focus on stocks with solid cash flows and dividends, attractive valuations, and growth in the current environment. Prefer small and mid-cap stocks in consumer staples, discretionary, healthcare, logistics, and oil and gas.

The bank's top picks include Heineken Malaysia (HEIM, 3255, Main Board Consumer Products Services Group), CTOS Digital (CTOS, 5301, Main Board Technology Group) and Armada (ARMADA, 5210, Main Board Energy Group).

Investors can focus on stocks with local market-based businesses, unique businesses, catalysts, and low valuations but constant demand.

He explained that loose fiscal and monetary policies will continue to support private consumption and non-essential consumption. With capital spending and high demand for floating production storage and offloading vessels (FPSO), the upcycle in the oil and gas sector is expected to continue, which in turn translates into a positive profit cycle.

In addition, in the field of technology, selective buying of stocks that are not sensitive to demand based on valuation is expected to perform well. The logistics sector will also benefit from rising freight rates, increased third-party demand, and government tax incentives.

(Kuala Lumpur, 9th) Given that the current macroeconomic and local political situation has reached a turning point, analysts believe that investors now have more reasons to be less pessimistic, suggesting that they continue to deploy investment strategies for next year and absorb valuable small capital stocks .

RHB Research analysts pointed out that the recent local political uncertainties have settled, the inflation rate and the interest rate hike cycle may have peaked, and China's further unblocking has revived the Malaysian stock market. The FTSE KLCI has rebounded 6.7 percent from its October lows, with the FTSE MidCap 70 (FMB70) and FTSE SmallCap (FBM SCap) also recovering some losses.

So far this year, the KLCI has fallen 6.4%; the FTSE Small Cap Index has fallen 3.8%, supported by chemical, consumer and oil and gas stocks, outperforming the market. However, the FTSE 70 MidCap index fell 9.2 percent, dragged down by technology and glove stocks.

The analyst said that while the FTSE 70 MidCap and FTSE SmallCap indices are currently trading below their five-year averages at 13.5 times and 10.7 times respectively, among the stocks the bank looks at, the small and mid caps are tied with the large caps. The valuation gap narrowed to 1.2 times, showing that investors have a strong appetite for small and medium-sized stocks with unique conditions and growth.

KUALA LUMPUR (Dec 8): Local oil and gas (O&G) players are expected to benefit from the rise in domestic capital expenditure (capex) by Petroliam Nasional Bhd (Petronas), said analysts.

Maybank IB Research, citing a 34% year-on-year (y-o-y) increase in Petronas' domestic capex, said its top picks in the sector include Yinson Holdings Bhd, Dialog Group Bhd and Hibiscus Petroleum Bhd.

"Meanwhile Bumi Armada Bhd, Velesto Energy Bhd, Wah Seong Corp Bhd and Malaysian Marine & Heavy Engineering [Holdings Bhd] are our small and mid caps 'buy'," it said.

It said Petronas is on track to meet its RM100 billion earnings target for FY2022 after the national oil company posted strong nine-month financial results with core net profit of RM72 billion, up 173% y-o-y.

“We expect oil price to remain elevated, as the winter period approaches and geopolitical risk remains high,” it said, adding that crude oil average estimate for FY2022 is unchanged, at US$100 per barrel (Brent).

“We do not rule out a higher oil price outlook in FY2023 considering the continued tightness in the global supply market, due to the prolonged structural under-investment since 2015,” it added.

Maybank also noted Petronas’ efforts in carbon emissions abatement and scaling up investment allocation on carbon neutral projects.

“With its NZCE 2050 pathway announced on Nov 1, 2022, Petronas has set a near-term target to cap operational emission to 49.5 million tonnes of CO2e by 2024 in Malaysia and achieve 25% absolute emissions reduction groupwide by 2030 (based on 2019’s baseline),” it said.

It said for this, Petronas will allocate 20% of its capex for decarbonisation projects and expansion into cleaner energy solutions over the next five years (2023 to 2026). Petronas targets 50% improvement in cashflows from operations by 2025 and 30% growth in revenue from new non-traditional business by 2030.

KUALA LUMPUR (Dec 8): Local oil and gas (O&G) players are expected to benefit from the rise in domestic capital expenditure (capex) by Petroliam Nasional Bhd (Petronas), said analysts.

Maybank IB Research, citing a 34% year-on-year (y-o-y) increase in Petronas' domestic capex, said its top picks in the sector include Yinson Holdings Bhd, Dialog Group Bhd and Hibiscus Petroleum Bhd.

"Meanwhile Bumi Armada Bhd, Velesto Energy Bhd, Wah Seong Corp Bhd and Malaysian Marine & Heavy Engineering [Holdings Bhd] are our small and mid caps 'buy'," it said.

It said Petronas is on track to meet its RM100 billion earnings target for FY2022 after the national oil company posted strong nine-month financial results with core net profit of RM72 billion, up 173% y-o-y.

“We expect oil price to remain elevated, as the winter period approaches and geopolitical risk remains high,” it said, adding that crude oil average estimate for FY2022 is unchanged, at US$100 per barrel (Brent).

“We do not rule out a higher oil price outlook in FY2023 considering the continued tightness in the global supply market, due to the prolonged structural under-investment since 2015,” it added.

Maybank also noted Petronas’ efforts in carbon emissions abatement and scaling up investment allocation on carbon neutral projects.

“With its NZCE 2050 pathway announced on Nov 1, 2022, Petronas has set a near-term target to cap operational emission to 49.5 million tonnes of CO2e by 2024 in Malaysia and achieve 25% absolute emissions reduction groupwide by 2030 (based on 2019’s baseline),” it said.

It said for this, Petronas will allocate 20% of its capex for decarbonisation projects and expansion into cleaner energy solutions over the next five years (2023 to 2026). Petronas targets 50% improvement in cashflows from operations by 2025 and 30% growth in revenue from new non-traditional business by 2030.

Oil bounced back..huat!!

Baru veryslow start to pick up brent jatuh pulak...adoi!

Oil prices may hit $110 a barrel in 2023 but Russia risk could 'turbocharge' them even higher, BofA says
Brian Evans
Oil tanker
Suriyapong Thongsawang
Brent crude could climb as high as $110 per barrel in 2023, according to Bank of America.
Analysts wrote in a note on Thursday that a price cap on Russian oil remains an upside risk.
The note outlines other key risks, including OPEC members like Iraq and Libya.
Brent crude oil could climb as high as $110 per barrel in 2023, though there are several risks that could add more more pressure on prices, according to a note from Bank of America.

Prices for the international oil benchmark averaged around $101 per barrel this year, and BofA sees more of the same next year, predicting an average of $100 and a peak of $110 at the height of the driving season. Brent will generally be lower in the first quarter of 2023, compared to the rest of the year, analysts added.

Brent currently trades around $86 per barrel, meaning the high end of BofA's forecast represents an increase of 28%.

But BofA analysts also noted several upside risk factors for oil prices next year, namely a price cap on Russian crude.

On Friday, European Union officials agreed to set the cap at $60 per barrel. That will take effect on Monday, alongside a ban on Russian oil imports into the EU and related services for cargoes worldwide. Russia has said it won't sell oil to any price-cap participants, and analysts have estimated its oil exports could fall by up to 1 million barrels per day.

"At present, we embed Russian total oil production levels of 10 mn b/d in our assumptions for 2023 compared to the 9.59 mn b/d figure provided by the IEA. Any meaningful downward deviation from these figures could turbocharge oil prices higher," the BofA note said.

Russia presents the largest upside risk to oil prices, but there are other risks lurking as well, analysts said. In particular, further supply disruptions from OPEC producers like Libya, Nigeria, Iraq or others could "put the oil market on notice."

A shortfall of 1 million barrels a day or more could come from a number of producers, especially from OPEC, with BofA estimating that every unexpected swing in supply or demand of 1 million barrels tends to move Brent oil prices by $20-$25 per barrel.

Oil prices may hit $110 a barrel in 2023 but Russia risk could 'turbocharge' them even higher, BofA says
Brian Evans
Oil tanker
Suriyapong Thongsawang
Brent crude could climb as high as $110 per barrel in 2023, according to Bank of America.
Analysts wrote in a note on Thursday that a price cap on Russian oil remains an upside risk.
The note outlines other key risks, including OPEC members like Iraq and Libya.
Brent crude oil could climb as high as $110 per barrel in 2023, though there are several risks that could add more more pressure on prices, according to a note from Bank of America.

Prices for the international oil benchmark averaged around $101 per barrel this year, and BofA sees more of the same next year, predicting an average of $100 and a peak of $110 at the height of the driving season. Brent will generally be lower in the first quarter of 2023, compared to the rest of the year, analysts added.

Brent currently trades around $86 per barrel, meaning the high end of BofA's forecast represents an increase of 28%.

But BofA analysts also noted several upside risk factors for oil prices next year, namely a price cap on Russian crude.

On Friday, European Union officials agreed to set the cap at $60 per barrel. That will take effect on Monday, alongside a ban on Russian oil imports into the EU and related services for cargoes worldwide. Russia has said it won't sell oil to any price-cap participants, and analysts have estimated its oil exports could fall by up to 1 million barrels per day.

"At present, we embed Russian total oil production levels of 10 mn b/d in our assumptions for 2023 compared to the 9.59 mn b/d figure provided by the IEA. Any meaningful downward deviation from these figures could turbocharge oil prices higher," the BofA note said.

Russia presents the largest upside risk to oil prices, but there are other risks lurking as well, analysts said. In particular, further supply disruptions from OPEC producers like Libya, Nigeria, Iraq or others could "put the oil market on notice."

A shortfall of 1 million barrels a day or more could come from a number of producers, especially from OPEC, with BofA estimating that every unexpected swing in supply or demand of 1 million barrels tends to move Brent oil prices by $20-$25 per barrel.

Oil could hit usd 100 soon. Report from bank of America...

Very long time never see comments from Mabel the cat...very busy ka dia di blog sapura...kikiki

Good performance and strong orders
VELESTO Energy's current order outlook is extremely strong. It was only at the beginning of last month that it successfully won a comprehensive work contract worth US$135 million (approximately RM600 million) to provide comprehensive drilling services for 14 oil wells in the North Malay Basin. Business will benefit from this new type of order. Including the latest contract, there are more than RM1.3 billion orders in hand, and there are still bids for jobs worth RM4.5 billion.

1.3 billion orders in hand to bid for 4.5 billion projects
Just 3 months ago, the company’s orders were only RM744 million, and the number of jobs in the bidding was only RM3 billion, which shows the enthusiasm of overseas activities.

As of the third quarter of September 30, 2022, thanks to the recovery of drilling business, VELESTO Energy has finally turned losses into profits, reporting a net profit of RM14.965 million, compared with a net loss of RM52.04 million in the previous period, and a turnover of RM173.77 in the same period million ringgit, up 89.8% year-on-year.

In view of the fact that there is obviously room for improvement in the asset utilization rate and rent, and the strong order outlook, the latest performance is obviously just the beginning, and the future performance is expected to be more and more courageous under the surrounding favorable conditions.

The most critical benefit of rising rents has not yet been reflected in the latest performance. Petronas in the early years when the oil and gas industry was in a downturn, in order to control costs, it kept the rents of various assets at a low level. Although the outlook for oil and gas has improved significantly, Malaysia’s offshore asset suppliers have Still serving Petronas at rents that are far lower than the regional market, but negotiations on rent adjustments have been going on for some time, and I believe there will be good news soon.

The average daily rent of drilling rigs under VELESTO Energy in the third quarter was US$74,000, which has remained roughly flat this year. Compared with the average rent of US$68,000 to US$70,000 from 2017 to 2021, the increase is obviously not large. It should be noted that it is driven by soaring demand , regional peers are now even getting more than $100,000 in rent. At its peak in 2014, the average daily rent for drilling rigs under VELESTO Energy was as high as US$151,000, more than double the current rent.

It is worth mentioning that in view of the abundant silver bullets of the oil giants in the Middle East, 15 drilling rigs in Southeast Asia will soon go to the Middle East to work for the world's largest oil producer Saudi Aramco, which may further tighten the supply of drilling rigs in the region and catalyze Rents continue to rise.

Overall, the good luck that VELESTO Energy has been waiting for for many years has finally come. Under the medium-term environment of insufficient supply and strong demand, it is estimated that the company will be full of money and earn back these years of losses for at least the next two years During the golden age, the stock price traded at only 0.5 times the book value, which added to the investment charm. It is expected to once again become an oil and gas stock that has attracted much attention from the market, and its outlook is impeccable.

The rental rate of jack-up drilling rigs has risen rapidly
Due to the high cost and the lack of new investment for many years, the market supply is limited. Stimulated by the obvious strengthening of offshore oil and gas investment, jack-up drilling rigs are now emerging as hot oil and gas assets. The utilization rate and rent are rising rapidly. Recently, Asset transaction prices are also considerable, the most notable of which is the purchase of seven jack-up drilling rigs produced between 2008 and 2013 by the Middle East drilling giant ADES Arabia Holdings for US$628 million (approximately RM2.8 billion). And 3 of them are on hold. In addition, they also bought the only drilling rig of the same model from ICON (ICON, 5255, Main Board Energy Group) for US$85 million (approximately RM380 million), and started a battle for assets First shot.

According to VELESTO Energy’s third-quarter operating report released on its official website last week, Malaysia currently only has about 12 jack-up drilling rigs, except for one that has been put on hold and one that is on standby, the remaining 10 rigs have been signed for work contract. There are 49 drilling rigs of the same type in Southeast Asia, 42 of which have been signed. After deducting 2 idle drilling rigs, the production capacity reservation rate has reached 91%. The supply of drilling rigs in the reflected area is quite tight, and there is no solution in the short to medium term. The surge in raw materials has made the cost of new drilling rigs too expensive, deterring potential investment, not to mention that new drilling rigs generally take more than two years to build.

Although 10 years ago at the peak of oil and gas pressure, it was obviously a painful lesson to focus on ordering drilling rigs frantically. However, it also puts the company in an extremely favorable position today, holding more than half of the domestic and relatively new drilling rigs. The drilling rigs are bound to emerge as the biggest winners when the market recovers.

In the "2022-2024 Oil and Gas Activity Outlook" report released by Petronas a few months ago, it is expected that 9 jack-up drilling rigs will be needed in 2022 and 2023, and the demand will increase significantly to 16 in 2024, exceeding The total number of jack-up drilling rigs in my country shows that there may be a further imbalance between supply and demand. At that time, the competition for drilling rigs will become more intense, and VELESTO Energy is the potential big winner.

Offshore oil and gas investment continues to heat up, and investors are increasingly interested in oil and gas stocks. Is the long-lost bull market quietly approaching?

After sharing the field of Offshore Support Vessel (OSV) in the previous issue, this issue of "Stocks in the Sea" will continue to talk about oil and gas stocks, and share another offshore asset with a hot prospect-Jack Up Rig. Also, VELESTO Energy (VELESTO, 5243, Main Board Energy Group), which is firmly in the leading position in the domestic drilling rig market .

Still need some magical touch from our big brothers..epf & pnb.

The worse is over for veryslow...now time to rise.

Nope! Wrong. Again Anwa£ need majority support in first hearing when parliament opens on 19th otherwise everything that he work hard for will be ruined...this cabinet is purposely to please certain group, at least for temporary. That's why you see most of bandits in line. Don't worry he will fix it once secured and maybe he will abolish certain law (akta).

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Velesto to ride on higher drilling activities, rig rates
CORPORATE NEWS
Friday, 02 Dec 2022

Velesto tells analysts drilling exploration programmes would likely increase in 2023 to 2024, particularly at the Malaysia-Thailand Joint Development Authority gas development area in the Gulf of Thailand.

PETALING JAYA: The prospects for Velesto Energy Bhd are expected to improve further amid higher drilling activities and rig utilisation rates.

The oil and gas offshore drilling services provider told analysts at a recent briefing that drilling exploration programmes would likely increase in 2023 to 2024, particularly at the Malaysia-Thailand Joint Development Authority (JDA) gas development area in the Gulf of Thailand.


The rig market, on the other hand, continued to tighten, with marketed rig utilisation rate at 91% in South-East Asia and 92% in Malaysia.

The latest rig counts in South-East Asia comprised 42 contracted, four idle and three cold stacked, while in Malaysia (including Malaysia-Thai JDA), there were 11 contracted rigs, and one rig each that was idle and cold stacked, TA Research wrote in a report, citing Velesto’s management.

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It noted that current daily charter rates in South-East Asia ranged from US$58,000 to US$120,000 (RM255,560 to RM528,710), while that in Malaysia continued to lag behind, ranging from US$58,000 to US$88,000 (RM255,542 to RM387,730).

“This was because the existing contracts were awarded earlier before the ensuing spike in oil prices. As such, Velesto expects Malaysian rates to eventually catch up as legacy contracts are replaced with new ones.”

It pointed out that there was likely limited upside for Velesto’s shares, given the fact that the counter had rallied about 71% over the past three months, as investors priced in the expected earnings turnaround for the company as well as new long-term charters and higher daily charter rates.

Don't sell it soon, looks 0.20c is possible next.

Damn hot man veryslow today...huat!!!

Aspects another production cut when opec+ group meets this coming sunday. When this happens then its could easily trigger the oil price back to 100usd again. 0.18c and above is possibility.

Boleh dapat 0.18c kah next week?

Boleh dapat 0.60c kah next week?

Despite concerns over China's zero-COVID policy and global recession fears, Goldman Sachs expects Brent crude oil prices to hit $110 a barrel next year.

Jeff Currie, global head of commodities at the investment bank, said Tuesday that the oil outlook in 2023 remains "very positive."

He told CNBC in an interview that Goldman plans to "stick to our guns" with a forecast for $110-a-barrel Brent. That represents more than 30% upside from the current level of around $83.

Still, there's "a lot of uncertainty" ahead, Currie noted, including the potential for lower demand in China, recession fears, and the European Union's embargo next week on seaborne imports of Russian oil.

"Demand is probably heading south again in China given what's going on," he said. "I think the key point with China right now is the risk that you get a forced reopening. That means it'll be self-imposed lockdowns where people don't want to get on trains, don't want to get to work and demand goes further south."

Meanwhile, OPEC+ will convene in Vienna on Sunday, and Currie said there is a high probability that the cartel will further reduce its oil production quotas, putting upward pressure on prices.

https://markets.businessinsider.com/news/commodities/oil-price-outlook-2023-goldman-sachs-crude-110-opec-china-2022-11

Mayday mayday...our battleship in deep problem..mayday mayday

Aiyoo! Aiyoo! Aiyoo!

Where got recession lah. Recession is simply US agenda lah bro....all politic lah, this Joe biden dirty job to threaten the world. Don't influence with such a nonsense.

Give time recovery on the way....

willc48

velesto.. hopeless. let the chinese runs the management

Betui kah..serba dinamik also actually run by Chinese (Chinese guy who conv to Malay mah), what happen now lingkup jugak...account fraudulent..kikiki. don't judge a book by its the cover.

Mayday! Mayday! Our battle ship in problem...mayday! Mayday.

I'm waiting to collect more...oh yeah! Come to papa.

Saudi (opec) and Russia already stand firm that they will maintain crude oil price in between usd 90 to 100. Why worried for 5% downfall after all these guys who are the one who will determine the market crude oil price...


Vicky

Aiyoo recession oil down 5%. Velesto all face the same. Why buy oil

https://oilprice.com/Energy/Energy-General/Oil-Bears-Beware-Crude-Prices-Could-Soon-Spike.html

https://oilprice.com/Energy/Energy-General/Oil-Bears-Beware-Crude-Prices-Could-Soon-Spike.html

Finally touched 0.135c...

I think all investors jump to Velesto. Velesto damn hot now. Armada engine not yet start.

Sdh pancit kah velesto hari ni...volume pun tarak

Petronas stingy fella la...jgn mimpi 500k

I don't think Petronas will pay 500k unless velesto engage business outside our 0ffshore....

Still not too late I guess..can get 0.115c fair price.

Wow! Every day got nice volume. Like that confirm something brewing man...come on Vele break the 13c barrier

Over the past three months, CGS-CIMB has upgraded 12 stocks, higher than the three upgrades in the quarter before, Ng said in the 2Q2022 earnings wrap report, mainly because of more attractive valuations, following recent share price retracements or improved earnings prospects.

Stocks that were upgraded to “add” included Affin Bank Bhd, Bumi Armada Bhd, DKSH Holdings (Malaysia) Bhd, Duopharma Biotech Bhd, Eco World Development Group Bhd, Hap Seng Plantation Bhd, KPJ Healthcare Bhd, Maxis Bhd, Power Root Bhd and Velesto Holdings Bhd.

But the research house also downgraded more stocks over the past three months — 15 in total — compared with 11 in the previous results review.

The key downgrades to “reduce” are Hartalega, Lotte Chemical Titan and Panasonic Manufacturing Malaysia Bhd. Stocks that were downgraded to “hold” from “add” include Farm Fresh Bhd, Kossan Rubber Industries Bhd, Malaysia Pacific Industries Bhd and Malayan Cement Bhd.