KUALA LUMPUR: Velesto Energy Bhd, formerly known as UMW Oil & Gas Corporation Bhd, returned to the black in the first quarter ended March 31, 2018, with a net profit of RM4.87 million compared with a net loss of RM104.92 million recorded in the same period last year.
The improvement was mainly due to higher rigs utilisation and a net foreign exchange gain of RM18.2 million, the oil and gas services provider said in a filing with Bursa Malaysia today.
Revenue, meanwhile, rose to RM121.76 million from RM74.28 million previously.
The company said both the drilling services and oilfield services segments reported higher revenue as a result of higher rigs utilisation and an increase in threading activity in China.
“The group is presently focusing on securing more contracts and improving operational efficiency.
“The potential improvement in both utilisation and operating cost is expected to contribute positively to the financial performance of the group for the financial year 2018,” it added.