Velesto a sure thing for 2024?
$VELESTO (5243.BMS)$ With the recent sell off of Bursa lets look at Velesto.
According to BIMB Securities
“Velesto posted a decent 1Q24 core earnings of RM46.8mn mainly driven by rising average daily charter rate (DCR). The DCR rose 8% QoQ to USD107k/day on the back of the new rate approved by Petronas for NAGA 2, NAGA 3, NAGA 4 and NAGA 6 jack-up rigs effective February 2024. Meanwhile, the revised dayrate for NAGA 8 that is working for Carigali Hess has commenced in April 2024. Overall, this should propel the average DCR to rise further in the coming quarters with peak DCR possibly achieved in 3Q24.
Velesto has a total of 6 Premium Jack Up Rigs and currently experience a high utilisation on hire use. They are also actively recruiting for manpower to operate the rigs being utilise all the way up to 2025. Looks like Velesto is currently minting it and their Q1 2024 performance is showing the results.
So is it a sure thing for 2024 to have Velesto in your portfolio? My personal view - at current price - what you have to lose with a positive cash flow company
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