PETALING JAYA: Velesto Energy Bhd has posted a net loss of RM22.22mil in its first quarter ended March 31 compared with a net profit of RM5.02mil in the previous corresponding period, mainly due to a net foreign-exchange (forex) gain of RM18.2mil a year earlier that resulted from the early settlement of revolving credit.
In a filing with Bursa Malaysia yesterday, the company said revenue in the quarter grew to RM127.03mil from RM121.76mil in the previous corresponding period.
“The drilling services segment reported a higher revenue in the first quarter of 2019 as a result of the higher utilisation of rigs and average charter rates.”
Velesto said its drilling services segment contributed a revenue of RM124.7mil or 98.2% of the total revenue for the group during the first quarter.
“This was due to a higher average asset utilisation rate of 66% as compared to 65% in the same period of 2018. Despite the higher revenue, the drilling services segment recorded a higher loss before taxation of RM10.8mil in the first quarter of 2019 compared with a loss of RM10.4mil reported in the same quarter of 2018.
“Included in the previous year’s corresponding period’s loss before taxation was an insurance claim of RM3.9mil. Without the claim, the segment’s loss before taxation in the prior year would have been RM14.3mil, that is RM3.5mil higher than the current period’s loss.”
Velesto said the oilfield services segment contributed a revenue of RM2.2mil during the quarter under review.
“This was lower than the revenue registered in the same quarter of 2018 by RM1.4mil, mainly due to the ceasing of business operations in Labuan.
“Consequently, the oilfield services segment reported a lower loss before taxation of RM300,000 in the first quarter of 2019 as compared with the RM900,000 loss recorded in the same quarter of 2018, an improvement of RM600,000 or 66.7%.”
The company’s other segments, meanwhile, recorded a loss before taxation of RM8.5mil as compared with a profit before taxation of RM16.2mil, mainly due to a net forex gain of RM18.2mil resulting from the early settlement of revolving credit recorded in the previous year’s corresponding period.On its prospects, Velesto said it was aggressively bidding for additional new contracts to replace the three contracts expected to expire late this year and next year.