Previously, Maybabk IB expect Velesto to end 2021 with a solid profit with high utilisation level of more than 70% for its current fleet size. They estimate three jack-ups (JUs), namely Naga 2, 4 and 8, will achieve a full three-month utilisation for 4Q21.

Let's see what is the reality when qtr report is out on monday.

Profit 118mill...consider ok la.

Seems qtr not good. Oil trading 103 usd but veryslow price plunged down. Apa lah nii

Wait until qtr release...

Wow! brent skyrocketing man..now 102

Oil 100 but veryslow not moving..apa nii

Boss dumping ler..careful

\KUALA LUMPUR (Feb 22): Velesto Energy Bhd said its unit Velesto Workover Sdn Bhd (VWO) has been awarded a contract by ExxonMobil Exploration and Production Malaysia Inc (EMEPMI) for the provision of one hydraulic workover unit and services to EMEPMI.

The contract is for a period of one year, commencing in the third quarter of 2022, until the completion of EMEPMI's selected wells programme.

“The value of this enabling contract with no guarantee of call-offs shall be based upon the agreed rates and work order, if any, issued by EMEPMI within the contract term,” said the oil rig operator in a bourse filing.

For the project, Velesto will deploy its VELESTO GAIT 6, a hydraulic workover unit with a maximum pulling and snubbing capacity of 460,000 lbs and 225,000 lbs, respectively, capable of rigging up on offshore platforms to perform wells workover, plugging and abandonment operations.

The group said the contract is expected to contribute to its earnings and net assets for the financial year ending Dec 31, 2022 (FY22) and FY23.

Velesto shares closed unchanged at 13 sen, with a market value of RM1.07 billion. Some 11.03 million shares were traded.

So many wild speculation...chill man lets wait for the qtr result first. Enjoy your day.

Hopefully Velesto return to black for this coming qtr

I think nothing got do with coming qtr. Biden hv talk with Putin to bring end the Russia Ukraine war. Investors caution over the oil price might drop.

https://www.klsescreener.com/v2/news/view/953059/the-edge-singapore-s-top-10-global-stocks-for-2022

Bursa mandi laut merah hari ni. Even hibiscus earning good qtr drop like mad.

https://www.bharian.com.my/dunia/eropah/2022/02/924738/russia-bersedia-lancar-serangan-penuh-ke-atas-ukraine-nato

This news enough to push oil prices higher tomorrow.

https://www.bharian.com.my/dunia/eropah/2022/02/924738/russia-bersedia-lancar-serangan-penuh-ke-atas-ukraine-nato

48...eeemm

The dispute in between Russia and Ukraine not over yet. Monday most probably oil up again..

https://www.reuters.com/world/europe/shelling-breaks-out-east-ukraine-west-moscow-dispute-troop-moves-2022-02-17/

Don't worry lah Iraq oil flooded the market no war all is bullsh##t lah. Oil always not enough the world is hunger for oil now. As long as opec and team stick with production plan they still control on the price. Next week they will announce crude oil stock decline then price move up again...Tom & Jerry story.

Oh no oh oh no no no no no noooo!

Oh no oh no oh no no no no no no noo

I believed there will be new contracts announcement soon. Those contracts that velesto received last year from Petronas is based on short term contracts...despite rising oil price, Petronas in good position to renew or awarded more new contract to Velesto....most probably soon after the qtr release.

Only qtr result will decide velesto fate. Lets hope for good qtr...supposed velesto should return to black after consider the amount of contracts that they received last year from Petronas.

Oil 95+.

Can anyone update what is the outcome of USA Iraq talk yesterday?

Oh noooo! Water fall again

“Bumi Armada is of the view that the sale consideration fairly reflects the discounted future cash flows which the group would have generated from the ice class vessels that are disposed,” it said in an announcement to Bursa Malaysia.

KUALA LUMPUR: Bumi Armada Bhd’s proposed sale of its ice class vessel companies for US$44.5mil (RM186.25mil) had been derived based on discounted future cash flows.

The group said this took into consideration cashflows from previous contracted firm charter periods for the ice class vessels which were to expire in 2026, as well as potential subsequent charter renewals by the charterer.

Bumi Armada announced earlier last month that it is proposing to sell its subsidiaries which own three ice class ships for US$44.5mil cash to Russian oil and gas giant PJSC Lukoil.

“Bumi Armada is of the view that the sale consideration fairly reflects the discounted future cash flows which the group would have generated from the ice class vessels that are disposed,” it said in an announcement to Bursa Malaysia.

“Although the proposed disposal may have been transacted at a loss, the group is also of the view that it is justified on the basis that key resources, namely the capital raised from the sale, and management bandwidth, can be more productively deployed when focused exclusively on the group’s core business,” it added.

Bumi Armada said that it had assessed the risks of its offshore marine services (OMS) business and had decided to monetise such assets since the financial year 2019.

“The ice class vessels were part of the group’s offshore support vessel (OSV) business, which in turn is one of the divisions within the OMS business segment,” it said.

Bumi Armada said that it had disposed of 40 OSVs, including the ice class vessels since 2019. It noted that it currently has four remaining OSVs.

“The decision to sell the ice class vessel companies is consistent with the group’s strategic plan to exit the OMS business segment,” it said. The proposed deal, which is due to be completed by the first quarter of this year, is expected to result in a loss on disposal of RM25mil to Bumi Armada.

Bumi Armada’s subsidiaries Bumi Armada Singapore Holdings Pte Ltd, Bumi Armada Offshore Contractor Ltd and Bumi Armada Russia Holdings Ltd had in Jan entered into a sale and purchase agreement to sell these companies to AC Management Co Ltd and KN Holding Ltd which are both wholly-owned by PJSC Lukoil.

It also said that the net assets of the ice class companies takes into consideration among others, the assumption that the ice class vessels will continue to operate beyond the contracted firm charter period although this may not always be the case in reality.

Closed green 0.15c

BUMI ARMADA
We refer to our announcement dated 19 January 2022 with respect to the Proposed Disposal ("Original Announcement") and wish to further clarify the matters below. Unless the context otherwise requires, capitalised terms used below shall have the meanings given to them in the Original Announcement.



1. Basis of the Sale Consideration of USD44.5 million



The Sale Consideration was derived based on discounted future cash flows, taking into consideration cashflows from the previous contracted firm charter periods for the Ice Class Vessels which were to expire in 2026, as well as potential subsequent charter renewals by the charterer.



2. Justification for the Sale Consideration



The Group had assessed the risks of its Offshore Marine Services ("OMS") business and had decided to monetise such assets since financial year 2019. The Ice Class Vessels were part of the Group’s Offshore Support Vessel ("OSV") business, which in turn is one of the divisions within the OMS business segment.



The Group has, since 2019, disposed of 40 OSVs, including the Ice Class Vessels. The Group currently has 4 remaining OSVs.



The decision to sell the Ice Class Vessel Companies is consistent with the Group’s strategic plan to exit the OMS business segment.



The net assets of the Ice Class Companies take into consideration certain key estimates, one of which being the assumption that the Ice Class Vessels will continue to operate beyond the contracted firm charter period (even though this may not always be the case in reality), but does not reflect the discounted future cash flows of these companies.



The Group is of the view that the Sale Consideration fairly reflects the discounted future cash flows which the Group would have generated from the Ice Class Vessels disposed.



Although the Proposed Disposal may have been transacted at a loss, the Group is also of the view that it is justified on the basis that key resources, namely the capital raised from the sale, and management bandwidth, can be more productively deployed when focused exclusively on the Group’s core business.



This announcement is dated 7 February 2022

Oh oh! Pancit

Touched 15c

Wow oil going to break 95usd soon

Huat ah! Heng ah! Ong ah!

Kiki

0.60 sdh mahu mari

Huat ah! Heng ah! Ong ah!

Kiki

Sekejap je nanti turun balik 0.02c.

(Bloomberg) -- The release of oil from U.S. strategic reserves was a boon for trading houses, many of which participated in the government program for the first time in years thanks to a market structure that uniquely benefits them.

Trafigura Group and Macquarie Group were among the traders awarded oil from the Strategic Petroleum Reserve in an exchange agreement with the Department of Energy. The traders are set to take advantage of so-called backwardation, a price structure where the cost of oil for immediate delivery is higher than in the future.

The Biden Administration released oil from the strategic reserve in a bid to lower surging fuel costs that are adding to the nation’s worst bout of inflation in nearly 40 years. Gasoline has risen to the highest since 2014 as crude prices rose by 55% last year, prompting Biden to coordinate an unprecedented release of crude with other nations like India and China. The release accounts for about 6 days of supply to U.S. Gulf coast refiners.

The trading firms can sell the oil immediately to refiners for current prices -- West Texas Intermediate crude is trading in the high $80s, and are expected to pay back in some cases by Sept. 2024, currently priced about $20 a barrel less on the forward curve. They can lock in profits by buying call options that will give them the right to buy WTI in the high $60s when it’s time to return the crude, according to traders.

The Department of Energy offered to loan fuelmakers 32 million barrels, on condition they pay it back in oil by 2024. So far, 68% of the total offered was awarded, where at least half was taken by trading houses. The loan is part of a 50 million barrel release.

The trading houses set up supply agreements with refiners when the crude release was announced, according to people familiar with the matter. Some refiners likely didn’t take SPR crude directly because it would be cost prohibitive to provide the necessary letter of credit to cover the entire two-year period to return the oil.

Other trading companies and refineries chose not to participate in the exchange because it would mean spending extra for blending to meet quality specifications when they repay the oil, according to traders. Blending can be costly because the caverns historically have held a mix of local and foreign crude grades. Borrowers would also have to secure storage tanks and other logistics to eventually return the crude to the government, eating into potential profits.

Trafigura and Macquarie both declined to comment for this story.

Meanwhile, Maybank IB Research singles out Velesto Energy Bhd, Icon, Malaysia Marine Heavy Engineering Bhd (MMHE), Wah Seong Corp Bhd and Dialog Group Bhd as key beneficiaries of Petronas’ domestic activities over the next three years.

This is based on the latest Petronas Activity Outlook 2022-2024 (PAO 2022-24).

“Icon and Velesto remain the best proxies to Petronas’ drilling programs, while MMHE, Wah Seong and Dialog are key beneficiaries of the fabrication, pipe-coating and maintenance works,” the research house points out.

Maybank IB Research also does not rule out a higher capex by Petronas in the second half of this year should oil prices continue to be strong.

“That said, capital remains key, for the higher oil price has led to higher costs and greater volatility, a setback and a concern to a sustainable recovery in the market,” it adds.

Areca’s Danny says Petronas is taking a conservative approach and sees crude oil price at US$50 to US$60 (RM209.50 to RM251.40) per barrel between 2022 to 2024.

“As long as Brent oil price remains above US$60 to US$65 (RM209.50 to RM272.35) per barrel mark, the activity level should remain encouraging.

“Crude oil prices could move higher based on the current situation and underinvestment in the past one to two years.

“However, prices are notoriously volatile, being as much driven by supply and demand issues, as well as speculative and derivative activities,” he adds.

Seems oil 100 not a dream but reality. Good start for O&G counters

Wow! Oil 89+ now...soon going to touch 90. Good start for O&G counters. Come on velesto go go. Why still veleslow

Wow! Oil 89+ ..going to touch 90. Tomorrow sure break 55c

If hit 0.20c also consider good enough.

Oil price is dropping. Collect back at 0.48/49

Profit taking

Wow! Velesto now 0.14c

Wow! Brent going to hit 89 ready

Wow! Brent going to hit 89 ready...90 otw

Wow brent ready touched 88

90 on the way

Wow! Brent 87...fantastic man. 90 on the way

Wow! Brent 87..fantastic man

60c mari