KUALA LUMPUR (Aug 21): Velesto Energy Bhd (KL:VELESTO) reported that its second-quarter earnings were nearly wiped out by expenses amid lower income, though the firm expects better times ahead.

Net profit for the three months ended June 30, 2026 (2QFY2026) was just RM531,000 versus RM50.44 million in the same quarter last year, an exchange filing showed. Only two-thirds of its rigs were drilling while average daily charter rates fell 16%, dragging revenue down 23% year-on-year to RM154.03 million.

“We expect performance to strengthen in the coming quarters, supported by contracted activity,” Velesto president Megat Zariman Abdul Rahim said, noting that five of Velesto’s six rigs are contracted until end-2026 with jobs on hand worth RM1.3 billion as at July 2026.

There are prospects worth RM3.7 billion while Velesto continues to actively pursue opportunities for Naga 3, he said. “With sustained focus on energy security, we see continued demand for jack-up drilling services in Malaysia and across Southeast Asia,” he added.

For the first six months, Velesto’s net profit totalled RM28.38 million, a 72% decrease when compared to the first half of 2025. Revenue declined 21% to RM337.38 million from the same period a year earlier.

Nevertheless, Velesto declared an interim dividend per share of 0.25 sen, bringing the total announced so far this year to one sen per share.

At Friday’s noon break, shares of Velesto settled half a sen or 1.96% higher at 26 sen, giving the group a market capitalisation of RM2.15 billion ahead of the results announcement.