Velesto Energy has secured a contract for its Naga 8 jack-up rig to perform infill drilling for Jadestone Energy at the East Belumut field offshore Malaysia. The four-month contract, valued at approximately $16.5 million, is scheduled to commence in March and was awarded to subsidiary Velesto Drilling. The Naga 8 is a premium rig capable of drilling to 30,000 feet in water depths up to 400 feet.

Company Commentary and Fleet

The company's president stated the contract demonstrates client confidence in Velesto's operational discipline and safety focus. Velesto reports owning a fleet of six jack-up rigs and two hydraulic workover units. This fleet number is subject to clarification regarding the recent divestment of the rig Naga 3 and its hydraulic workover business, which was part of a portfolio optimization strategy.

Financial and Operational Performance

As of February 2026, Velesto's order book was 1.3 billion ringgit ($334.27 million), with a tender book of 3.7 billion ringgit. The company's financial results for the fourth quarter of 2025 showed revenues of 234 million ringgit and a profit after tax (PAT) of 49 million ringgit, both lower than the same period in 2024. For the full year 2025, PAT was 202 million ringgit on revenues of 899 million ringgit, also down from 2024 figures.

Operationally, the fleet utilisation rate was 83% for Q4 2025 but averaged 72% for the full year. The average dayrate was $112,000 in Q4 and $118,000 for the full year, declines from the prior year.

Strategic Outlook

Looking forward, the company's strategy centers on strengthening its core jack-up drilling operations, enhancing operational excellence, and enforcing cost discipline. The aim is to ensure financial prudence and capital efficiency to deliver sustainable shareholder returns and achieve long-term resilience and growth.