Lower utilisation, charter rates to weigh on Velesto

Velesto had recently disclosed that, in 2020, its jack-up (JU) rigs delivered 65% utilisation, with an average daily charter rate (DCR) of US$70,000 per day. This is slightly lower than CGS-CIMB Research’s assumption of 67% utilisation and an average DCR of US$71,755 per day because during Q4’20, the Naga 6 JU rig’s contract ended a bit earlier than expected.

PETALING JAYA: Velesto Energy Bhd’s core net loss for the financial year ended Dec 31,2020 (FY20) may be more than previously estimated, due to lower-than-expected utilisation and daily charter rates in last year’s fourth quarter (Q420), said a CGS-CIMB Research report.

Velesto had recently disclosed that, in 2020, its jack-up (JU) rigs delivered 65% utilisation, with an average daily charter rate (DCR) of US$70,000 per day.