KUALA LUMPUR (Nov 20): Velesto Energy Bhd (KL:VELESTO) rose 17% in the third quarter from a year earlier, as higher rig utilisation and lower accounting charges offset a decline in revenue.

Net profit for the three months ended Sept 30, 2025 (3QFY2025) was RM50.16 million, the oil and gas services firm said in an exchange filing. Revenue for the quarter fell 32% year-on-year to RM240.13 million due to a project completion and lower average daily charter rates.

“Our performance this quarter reflects Velesto’s continued focus on maximising rig utilisation and strengthening operational excellence,” Velesto Energy president Megat Zariman Abdul Rahim said in a statement.

Utilisation rate was 81% compared to 57% in 2QFY2025, while daily charter rate averaged US$111,000 compared to US$123,000 in the preceding quarter. The company still has jobs on hand worth RM1.1 billion and jobs tendered totalled RM3.2 billion at the end of September.

The company’s Naga 2, Naga 4, Naga 6, and Naga 8 rigs remain contracted through the first quarter of 2026. Naga 5 is on the job until the second quarter of 2026. Naga 6 and Naga 8 will undergo preparation works for their next projects.

Naga 3, meanwhile, is undergoing its special periodic survey, a detailed inspection typically carried out every five years to assess conditions of the assets, as well as repair work that is expected to be completed in the first quarter of 2026.

For its first nine months (9MFY2025), net profit was barely higher at RM153.2 million compared to the same period last year. Revenue was RM664.69 million, down 39% when compared to the same nine-month in 2024, due to the completion of a major project and lower rig utilisation.

Velesto did not declare any dividend, though the company has distributed and paid out 75 sen per share on Nov 18.

Shares of Velesto were a tad lower at 24 sen at midday trading break on Thursday, ahead of the results announcement. At the last price, the company had a market capitalisation of RM1.97 billion.