KUALA LUMPUR: Velesto Energy Bhd’s share price inched up half-a-sen to 26.5 sen after securing a US$51 million (US$1=RM4.08) contract from Chevron Malaysia under the North Malay Basin Full Field Development Campaign.
At 10.53 am, 28.52 million of its shares were transacted.
CIMB Securities Sdn Bhd said Velesto’s jack-up rig, Naga 8, has secured the contract for integrated rig, drilling, and completion services from Chevron.
It said the contract will commence in August 2026 and run through 2028.
“Based on an assumed firm duration of 17 months, the contract implies a blended day rate of approximately US$98,000 per day.
“The contract replaces the recently terminated PC Ketapang campaign, which carried a lower assumed day rate of US$90,000 per day,” it said in a research note today.
CIMB Securities said Velesto is currently re-marketing Naga 3 for a potential job commencing in the fourth quarter of 2026, following the recent termination of the rig’s proposed disposal.
Meanwhile, the rest of its rigs are contracted for the remainder of financial year 2026 (FY2026), with the company now focusing on securing FY2027 jobs.
“Our assumptions imply a utilisation rate of 69 per cent in FY2026, slightly lower than 72 per cent in FY2025, before improving to 76 per cent in FY2027,” it said.
Hence, the research firm made no changes to its earnings forecasts for Velesto and its target price of 35 sen for the company’s shares, as the contract award has already been incorporated into the earnings forecasts.
“We believe Velesto is well positioned to benefit from the recovery in domestic upstream activity and a potential tightening of the jack-up rig market,” it added.
— BERNAMA
