PETALING JAYA: Velesto Energy Bhd is anticipated to secure several short-term contracts from the second quarter of 2021, which will help offset potential weak results for the jack-up rig service provider.
UOBKayHian said in a report that Velesto is expected to report losses for the fourth quarter of 2020 and first quarter of 2021, due to falling utilisation as its existing contracts are set to expire.
“Potentially, its earnings before interest, depreciation and amortisation (EITDA) generation may fall significantly for these quarters and our estimate on its EBITDA break-even is at 30% utilisation.
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