Drop in rig utilisation rate to affect Velesto earnings

CGS-CIMB Research expects drilling utilisation rate at the company to fall to between 50% and 55% in 3Q23 compared with 88% in 2Q23.

PETALING JAYA: Velesto Energy Bhd’s performance is expected to be dragged by the lower utilisation rate of its rigs, which will result in reduced earnings in the upcoming quarters, say analysts.

TA Research said it expected some of Velesto’s jack-up rigs to undergo special periodic survey or underwater inspection in lieu of drydocking throughout most of the third quarter of 2023 (3Q23).