[%amgg%] 
Research by CGS 
Add – TP of MYR 0.325

“Earnings visibility building for FY25-26F” 

Findings from our bottom-up analysis of the rig schedule disclosed by Velesto in May 2024 suggest that it is on track to deliver 82% utilisation in FY24F (as we expected), given that all six of its jack-up (JU) rigs have locked-up their contracts already. The key uncertainty is for 2H24F, where Velesto will send three of its rigs (Naga 2, Naga 5 and Naga 6) for special periodic survey (SPS); this could take longer than expected if certain equipment need to be replaced, and if so, could delay the commencement of the subsequent drilling jobs. However, Velesto has allocated three months for each rig SPS, when usually only two months is required; hopefully, this will be sufficient to account for any unforeseen surprises

Analyst(s):
Raymond YAP, CFA
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$KLSE-VELESTO 
Research by CGS 
Add – TP of MYR 0.325

“Earnings visibility building for FY25-26F” 

Findings from our bottom-up analysis of the rig schedule disclosed by Velesto in May 2024 suggest that it is on track to deliver 82% utilisation in FY24F (as we expected), given that all six of its jack-up (JU) rigs have locked-up their contracts already. The key uncertainty is for 2H24F, where Velesto will send three of its rigs (Naga 2, Naga 5 and Naga 6) for special periodic survey (SPS); this could take longer than expected if certain equipment need to be replaced, and if so, could delay the commencement of the subsequent drilling jobs. However, Velesto has allocated three months for each rig SPS, when usually only two months is required; hopefully, this will be sufficient to account for any unforeseen surprises

Analyst(s):
Raymond YAP, CFA
raymond.yap@cgsi.com