Velesto optimistic about jack-up market’s future, with ‘another excellent quarter’ in the bag

Malaysian rig owner Velesto Energy has reported solid financial results for the second quarter of 2024, which it attributes to higher utilization and average daily charter rates.

According to the Malaysian player, the “excellent” second quarter of 2024 saw a 41% increase in revenue, which reached RM393 million, or approximately $90.9 million. Additionally, profit after tax (PAT) rose by 270% to RM63 million, or roughly 14.5 million for the quarter on a year-on-year basis. In the first six months of the year, the firm’s revenue increased by 29% to RM732 mil, or $196.3, while PAT was up by 244%, amounting to RM110 mil, or $25.4 million.

“We are proud to report another solid quarter backed by higher earnings due to higher utilisation at 98% and higher average daily charter rate at USD115k per day during the quarter. Notably, our operational performance reached 99% uptime with zero Lost Time Injuries,” said Velesto’s President, Megat Zariman Abdul Rahim. 

The group expects a lower utilization in the second half of 2024, as three of its rigs – NAGA 2, NAGA 5, and NAGA 6 – are set to undergo their five-yearly mandatory special periodical survey (SPS). In contrast, since the aforementioned rig trio has been contracted by Petronas up to 1Q 2026, while a fourth rig, NAGA 8, is set to stay with Carigali Hess Operating Company up to 4Q 2025, a high utilization rate is anticipated for 2025.

Velesto describes the oil and gas global outlook fundamentals as strong and oil markets as balanced, seeing that 93% of marketed jack-up rigs are contracted. With the remaining order book at RM1.3 billion, or $300 million, the firm is optimistic about its financial performance for 2024.