UOB Kay Hian Research downgrades Velesto to Hold, TP 42c

UOB Kay Hian Research said industry reports revealed that Naga 4 rig had secured a long-term contract which Velesto has yet to announce. This contract is for a seven-well charter from Mubadala for the Pegaga field (SK320).

KUALA LUMPUR: UOB Kay Hian Malaysia Research has downgraded Velesto Energy to Hold as rising rates has been priced in but maintained the target price of 42 sen with an entry price of 38 sen.

It said on Tuesday that fresh after announcing Naga 8’s lucrative multi-year contract, it learnt that Naga 4 has secured a one-year contract, which will likely exceed its utilisation assumption for 2020.