Malaysian driller Velesto Energy is back in the black after reporting a net profit of RM16.27 million ($3.88 million) for the second quarter following an insurance payout related to the sunken jack-up drilling rig NAGA 7.
Velesto Energy’s NAGA (dragon) 7 jack-up drilling rig sunk offshore Malaysia in early May while under contract to ConocoPhillips.
In its latest financial report, the driller said that survey works for the submerged NAGA 7 jack-up rig are in progress. Salvage operations will be planned once the survey is complete, said Velesto.
During the second quarter last year the company reported a net loss of RM15.25 million.
Revenue for the latest quarter fell 40.7% to RM83.55 million versus RM140.95 million for the quarter ending June 30, 2020, largely due to lower drilling activities.
Velesto’s earnings for the quarter ending June 30, 2021, also marked an improvement from the first quarter this year, when it posted a net loss of RM60.47 million, as revenue increased 90.2% from RM43.93 million — largely due to higher revenue from drilling services.
Velesto said three of its six jack-up drilling rigs are working. Another two are scheduled to start mobilisation in September.
The remaining unit is being tendered for a number of potential contracts.
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