corporate

Velesto more than doubles net profit in Q1

KUALA LUMPUR: Velesto Energy Bhd's net profit jumped more than double to RM46.81 million in the first quarter (Q1) ended March 31, 2024 from RM14.22 million a year ago. 

In its filing with Bursa Malaysia today, Velesto said its revenue grew 18 per cent to RM338.58 million from RM287.25 million last year.

No dividend was declared for the quarter.

On its prospect, Velesto said the positive outlook in the global oil and gas industry augurs well for its performance. 

On the supply side, it said Organisation of the Petroleum Exporting Countries (Opec) and Saudi Arabia are expected to maintain their production cuts, offset by increasing supply from non-Opec countries. 

"As such, inventory changes and oil markets are expected to continue to remain balanced. Geopolitical risk that may result in uncertainty to oil supply and markets remains high. 

"However, it has not affected oil markets as significantly as expected," it said. 

Meanwhile, Velesto said the company expects overall global utilisation of jack-up rigs to remain strong for 2024/2025. But, the jack-up drilling rig market may experience uncertainty. 

"The company is monitoring the current situation in the Middle East for its future bidding strategy, especially for mid-2026 onwards.

"Barring any unforeseen circumstances, the company is optimistic that the financial performance for the financial year 2024 will be as promising as 2023," it added.

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