Velesto Energy Berhad : Briefing on 1Q 2022 Results

F I N A N C I A L R E S U L T S

F O R T H E Q U A R T E R E N D E D 3 1 M a r c h 2 0 2 2

2 6 M a y 2 0 2 2

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.

Private & Confidential

EXECUTIVE SUMMARY

• Industry Update

• • The oil and gas outlook remains strong due to supply and demand imbalance facing energy commodities
• Company Update
• • Company continues its safe operation in 1Q 2022
  • Naga 5 and Naga 6 are currently in the shipyard in Singapore for Offline capability upgrade
  • Company has recently secured additional works for its Rigs as well as HWU

Brent and WTI Crude Oil Price (USD per barrel)

• Financial Update
• • 1Q 2022 financial results are better than
    1Q 2021 results but lower than 4Q 2021

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INDUSTRY

UPDATE

INDUSTRY UPDATE

• The war in Ukraine continues to put pressure on energy

supply and demand globally		120
	112
• Global and regional upstream activities, including in		90
Southeast Asia are increasing		70

• The high oil prices have spurred a sudden increase in activities in the oil and gas industry
• In Malaysia, our estimates reveals between 100 to 115 wells annually in 2022 and 2023 to be drilled that will require jack-up rigs

2022e 2023e 2024e Long- Term

Source: Pareto Securities, 24 May 2022

• Production enhancement, well intervention, and well abandonment activities are set to increase in 2022 and 2023
• The end of the pandemic globally has helped operational recovery

Source: PETRONAS Press Release, 27 January 2022

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