Velesto Energy Berhad : Briefing on 4Q 2021 Results

FINANCIAL RESULTS FOR THE YEAR ENDED 31 December 2021

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DISCLAIMER

This material does not constitute and is not an offer to sell or the solicitation of an offer to buy securities of any company referred to in this presentation in the Malaysia or elsewhere.

This material may contain forward-looking statements by the Company that reflect management's current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from those discussed in the forward-looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of the Company and the Company assumes no obligation or responsibility to update any such statements.

No representation or warranty (either express or implied) is given by or on behalf of the Company or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information.

The Information is and shall remain the exclusive property of the Company and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). This presentation is for the purposes of information only and no part of this presentation is intended to be or shall be construed as an offer, recommendation or invitation to subscribe for or purchase, or otherwise making available, any securities in the Company.

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INDUSTRY UPDATE

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INDUSTRY OUTLOOK

ECONOMIC		OIL & GAS		DRILLING RIG

•	Fewer restrictions	•	Global oil demand to
	globally despite rise in		recover to 100 mb/d,
	COVID-19		pre-pandemic levels
•	IMF forecast global
	economy to grow by	•	US rig count and oil
	4.4% in 2022		production increasing
•	US Fed signalling
	interest rate hikes in
	response to inflation
		•	E&P Capex to grow 16%
•	Escalating geopolitical		in 2022

tension in Ukraine

• Recovering demand for jack-up rigs while supply remains stable
• Signs of increase in jack-up rig utilization and daily charter globally
• PETRONAS Activity Outlook showing increasing drilling program up to 2024

Private & Confidential

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OIL PRICE MOVEMENT - BRENT

2017 2018 2019 2020 2021 2022

100	(USD/bbl)	94

90

80

70

85

	75	76			79
			72
67		68		67	69
62			61	63	63
			60

60	55	52	52	RISING OIL
	51

50	44 45	PRICES

40

30

20

10

Positives:

• Reopening of economic activities
• Increase in oil demand
• Underinvestment in oil & gas
• Increase in geopolitical tension

33

Negatives:

• Risk of pandemic resurgence
• Inflation and Interest rates
• Renegotiation of Iran sanctions
• Sanctions on Russia

0

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

Jan-22

Feb-22

OIL PRICES HAS INCREASED TO MORE THAN USD80/BBL

SINCE ITS RUN-UP IN OCTOBER 2021

Source : Markets Insider

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