[VELESTO ENERGY BERHAD，确保更多合同和提高运营效率]
The Group recorded a profit before tax of RM4.9 million in the first quarter of 2018 against the RM104.9 million loss recorded in the same quarter of 2017, a significant improvement of RM109.8 million or 104.7% mainly due to higher rigs utilisation and net forex gain of RM18.2 million.
The Group posted a profit of RM4.9 million in the first quarter of 2018 compared to the RM977.3 million loss reported in the fourth quarter of 2017 due mainly to asset impairment loss of RM982.1 million.
Drilling Services Segment:
With the benchmark Brent oil price continuing to improve, hovering above USD70 per barrel for the last one month, more confidence is seen in the upstream sector, resulting in more activities especially in drilling. While the oil price is not expected to rise significantly further in the near term, the industry is presently witnessing a gradual recovery, albeit at a slow pace.
At present, five of the Group’s jack-up drilling rigs are working with two more expected to be mobilized in the third quarter. While there is no guarantee for continuous full utilisation of the Group’s drilling rigs, the utilisation rate is expected to stay at a relatively healthy level in the near future. Besides working on extension of existing contracts, the Group is also bidding and negotiating for new contracts to replace expiring ones.
Oilfield Services Segment:
The oilfield services sector is showing signs of slow recovery. The Group is continually reviewing this segment to evaluate its viability.
The Group is presently focussing on securing more contracts and improving operational efficiency. The potential improvement in both utilization and operating cost is expected to contribute positively to the financial performance of the Group for the financial year 2018.
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