Velesto Energy, the Malaysian drilling contractor, has a robust tender book valued at 3.2 billion ringgit ($769 million), with an order book standing at 1.1 billion ringgit as of September. The company is focused on securing long-term contracts that provide steady earnings visibility, aiming to foster sustainable value creation, according to Megat Zariman Abdul Rahim, the company’s president.
Velesto owns six premium jack-up rigs equipped with advanced automated systems, capable of operating in water depths of up to 400 feet. The company also has two hydraulic workover units, Gait 5 and Gait 6. The jack-up rigs, including Naga 2, Naga 4, Naga 6, and Naga 8, are under contract through the first quarter of 2026, while Naga 5 remains on charter until the second quarter of 2026.
After completing their current contracts, Naga 6 and Naga 8 will undergo preparation work for upcoming projects. Naga 3 is currently experiencing its special periodic survey (SPS) and repairs, with completion expected in the first quarter of 2026.
In its third-quarter 2025 report, Velesto posted revenues of 240 million ringgit, a decline from 352 million ringgit during the same period last year. However, the company’s profit after tax rose to 50 million ringgit, up from 43 million ringgit in the third quarter of 2024.
Despite the drop in revenue, Velesto reported a significant improvement in fleet utilization, achieving an 81% rate for the three months ending 30 September, up from 57% in the previous quarter. However, the average charter day rate declined to $111,000, compared to $123,000 in the second quarter of 2025.
“Our performance this quarter highlights Velesto’s focus on maximizing rig utilization and enhancing operational excellence,” said Megat Zariman Abdul Rahim.
Velesto also emphasized its commitment to high operational standards, reporting a 99% operating efficiency, with zero Lost Time Injuries and no recordable incidents in the third quarter.
Currently, five of Velesto’s rigs are in operation across Malaysia, Thailand, and Indonesia, and the company continues to see high fleet utilization.
In addition, Velesto distributed an interim dividend of 0.75 sen per share, payable on 18 November. This, along with the improvements in total shareholder returns over recent months and years, underscores the company’s commitment to delivering consistent value to its shareholders.
