KUALA LUMPUR: Velesto Energy Bhd
's bottomline contracted nearly 20% year-on-year in the second quarter of the year as revenue halved due to the completion of the i-RDC project and lower rig utilisation.
In a bourse filing, the drilling and oilfield services firm reported a net profit of RM50.44mil as compared to RM62.81ml in the year-ago quarter, which saw earnings per share dip to 0.61 sen from 0.76 sen previously.
The group's revenue contracted to RM199.91mil in 2QFY25 from RM393.43mil in the comparative quarter last year.
The latest result brought Velesto's cumulative six-month net profit to RM103.04mil, down from RM109.62mil in 1HFY24, while revenue contracted to RM424.56mil from RM732.01mil in the year-ago period.
The board of directors declared an interim dividend of 0.75 sen per share, going ex on Oct 17, 2025, and payable on Nov 18, 2025.
Velesto said the utilisation rate during the quarter stood at 57%, down from 67% 1Q25, while its daily charter rate dropped to US$123,000 a day from US$127,000 a day.
Its order book as at July 2025, stood at RM1.2bil, providing earnings visibility until 2028 with a tender book of RM4.3bil.
"Velesto continues to deliver strongly every quarter, supported by our current order book and a disciplined cost management. This reflects the resilience of our portfolio and our ability to secure work in a more dynamic market environment.
"We remain anchored in driving performance through cost optimization, operational efficiency, and a strong financial position, which support sustainable shareholder returns and long-term value creation," said Velesto president Megat Zariman Abdul Rahim.
