KUALA LUMPUR: Velesto Energy Bhd
ramped up its utilisation rate and maintained perfect asset uptime in the first quarter of 2026, which helped to offset the impact of a decreased daily charter rate.
"We anticipate potentially tighter rig market conditions driven by a renewed focus on energy security and higher capital expenditure by oil and gas operators in the region.
"In light of this, we will continue maximising opportunities for our own rigs while pursuing additional contracts through strategic collaborations to expand market share and enhance earnings opportunities," said president Megat Zariman Abdul Rahim in a statement.
In its latest results announcement, the drilling and oilfield service provider said net profit nearly halved to RM27.85mil in the first quarter of the year from RM52.61mil in the year-ago quarter as topline contracted on lower average daily charter rates.
According to the group, quarterly revenue slipped to RM183.35mil in 1QFY26 from RM224.65mil in the previous comparative quarter.
Average daily charter rates in the drilling segment fell to US$108,000 a day as compared to US$127,000 a day in 1QFY25, although the decline was partially offset by improved utilisation of 75%, up from 67% the year-ago quarter.
Consequently, the drilling services segment recorded revenue of RM179.9mil in 1QFY26, down from RM221.1mil in 1QFY25. The segment's pre-tax profit came in at RM36.4mil, a decrease of RM28.6mil from a year earlier due to the lower revenue.
Velesto's order book stood at about RM1.1bil, supported by a tender book of RM3.1bil as at April 2026.
The board of directors declared an interim dividend of 0.75 sen a share, with entitlement date on July 20, 2026, and payable on Aug 17, 2026.
