Strong turnaround in second half for VELESTO 5243 S VELESTO ENERGY BERHAD, says Affin Hwang
Affin Hwang Capital expects a strong second half of 2022 (2H22) profit turnaround for Velesto Energy Bhd on the back of a higher capacity utilisation.
KUALA LUMPUR: Affin Hwang Capital expects a strong second half of 2022 (2H22) profit turnaround for Velesto Energy Bhd on the back of a higher capacity utilisation.
The research house said the drilling market outlook had turned more favourable compared to a quarter ago with demand and charter rates on the rise.
Barring any unforeseen disruptions, it said Velesto should end 2022 with a full-year 59 per cent utilisation.
"Management is also sticking to its bullish tone as it expects utilisation to rise close to 80 per cent in 2023 from our existing 65 per cent assumption.
"Velesto has locked in roughly 18 per cent utilisation so far, with most of the potential contracts still under negotiation under Petronas' umbrella package," it said.
Meanwhile, the firm said the estimated higher 72 per cent rig utilisation in 2H22, above Velesto's 60 per cent breakeven level should lead to a strong profit turnaround and narrow 2022 losses significantly.
It said 2023 was shaping up to be a strong recovery year driven by a recovery in both rig demand and charter rates.
"We reaffirm our Buy rating and target price of 11 sen on Velesto.
"We believe market expectation on Velesto has bottomed and downside on its share price appears limited.
"We see value emerging and believe that the current share price has not factored in the improving drilling market outlook," it added.
https://www.nst.com.my/business/2022/09/830502/strong-turnaround-second-half-velesto-says-affin-hwang
Singapore Investment
-
-
-
-
-
-
-
-
-
-
-
-
-
All that Glitters Is Gold19 hours ago
-
-
Portfolio (March 30, 2024)22 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
QAF #77 - 2023 Annual Report1 day ago
-
-
-
6 Secrets of Millionaire Couples2 days ago
-
The Secret To Investing2 days ago
-
-
-
-
-
-
-
-
-
The Green U-Turn3 days ago
-
-
-
Week Ahead4 days ago
-
Burnt out!4 days ago
-
-
-
-
Feb 2024 Expenditure5 days ago
-
-
-
-
-
-
-
Not Worth It6 days ago
-
Trip to Legoland6 days ago
-
-
-
-
-
-
-
Starting Our Second Property Cycle1 week ago
-
-
-
Position Update1 week ago
-
-
Finance Investment Movement 432 weeks ago
-
-
-
-
MAS Singapore Gold Vault2 weeks ago
-
Gaining And Holding2 weeks ago
-
-
-
-
Book Giveaway- Winners2 weeks ago
-
-
ICYMI: Corporate Connect with Singpost2 weeks ago
-
-
Just sold at record high!3 weeks ago
-
-
-
-
-
-
-
-
-
Monthly IBKR Update – Feb 20243 weeks ago
-
-
Feb 2024 Portfolio3 weeks ago
-
Rethinking my financial targets for 20243 weeks ago
-
-
-
-
Summary of February 20244 weeks ago
-
Portfolio -- Feb 20244 weeks ago
-
The Market Is A Scam!4 weeks ago
-
-
-
-
-
-
-
-
-
-
-
Today’s Deal of the day – Max Miles1 month ago
-
-
Options Trading Journal Jan 20241 month ago
-
-
-
-
-
-
-
-
-
-
-
End of 2023 Review2 months ago
-
-
Year 2023 DIYQuant Portfolio Performance Report2 months ago
-
Monthly Summary of November 20233 months ago
-
3 Simple Poker Strategies for Beginners3 months ago
-
Migration of website4 months ago
-
-
Abandon REITS?4 months ago
-
-
-
-
-
-
-
-
-
August 2023 Portfolio Updates6 months ago
-
-
-
-
Hello SP Group, I'm Back!9 months ago
-
-
-
-
I am in debt9 months ago
-
A New Light10 months ago
-
-
-
-
-
-
-
Demoralized1 year ago
-
2022 Thoughts, Hello 2023!1 year ago
-
Series of Defaults for Maple Finance1 year ago
-
Takeaways from “Sea Change”1 year ago
-
-
Greed is Coming Back1 year ago
-
-
-
-
-
-
-
-
-
-
-
What is Overemployment1 year ago
-
-
-
-
-
-
-
-
-
-
-
Home
VELESTO
Strong turnaround in second half for VELESTO 5243 S VELESTO ENERGY BERHAD, says Affin Hwang