KUALA LUMPUR: Velesto Energy Bhd
recorded a lower net profit of RM202.17 million for the financial year ended Dec 31, 2025 (FY2025) from RM207.70 million in the preceding year.
The lower profit was primarily due to reduced rig utilisation, partly offset by cost provisions recognised in the corresponding period last year, the locally based multinational provider of upstream oil and gas drilling services said in a filing with Bursa Malaysia today.
Revenue was also lower at RM898.56 million compared to RM1.36 billion previously, primarily due to the completion of the i-RDC project and lower rig utilisation during the year.
On a full-year basis, the utilisation rate was 72 per cent (2024: 87 per cent) and the average daily charter rate was recorded at US$118,000 per day (2024: US$122,000 per day), said Velesto Energy.
For the fourth quarter (4Q) of FY2025, the group’s net profit dropped to RM48.97 million from RM55.15 million in the previous year’s corresponding quarter.
Velesto Energy said the decrease was partially offset by lower finance costs and depreciation in the current quarter, adding that the corresponding quarter had included accelerated depreciation.
The 4QFY2025 revenue decreased to RM233.87 million compared with RM276.06 million, mainly due to lower average daily charter rates during the current quarter and the completion of the i‑RDC project in October 2024.
In a separate filing, Velesto president Megat Zariman Abdul Rahim said the group closed FY2025 with a solid performance and declared a second interim dividend of 2.25 sen per share, with a total of three sen per share for FY2025, the highest in Velesto’s history.
"The divestment of NAGA 3 and the hydraulic workover business was part of our ongoing portfolio optimisation to strengthen our core offerings.
"Looking ahead, we will continue to focus on strengthening our core jack-up drilling operations, enhancing operational excellence and reinforcing cost discipline across the group,” he said.
Megat Zariman also said that by maintaining financial prudence and capital efficiency, the group aims to deliver sustainable returns to its shareholders while positioning Velesto for long-term resilience and growth.
As at February 2026, Velesto’s order book stood at RM1.3 billion, supported by a healthy tender book of RM3.7 billion.
Meanwhile, Velesto Malaysian Ventures Sdn Bhd’s wholly owned subsidiary, Velesto Drilling Sdn Bhd, has received a letter of award from Jadestone Energy (Malaysia) Pte Ltd.
The contract is for the provision of a jack-up drilling rig for the East Belumut Phase 9 infill drilling project, offshore Peninsular Malaysia, valued at approximately US$16.49 million.
Velesto Malaysian Ventures is a wholly-owned subsidiary of Velesto Energy Bhd.
In a Bursa Malaysia filing today, Velesto Energy said the contract will run from March 2026 to July 2026, during which the group will assign its rig, NAGA 8, for this purpose.
NAGA 8 is a premium independent-leg cantilever jack-up drilling rig with drilling depth capability of 30,000 feet and has a rated operating water depth of 400 feet.
According to the filing, the provision of services to be provided by Velesto Energy is expected to contribute positively towards the earnings and net assets of the group. - Bernama
