Velesto Energy Berhad : Briefing on 3Q 2021 Results

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

F O R T H E 9 M O N T H S E N D E D 3 0 S e p t e m b e r 2 0 2 1

3 0 N o v e m b e r 2 0 2 1

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

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INDUSTRY UPDATE

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INDUSTRY OUTLOOK

ECONOMIC

• Global economy expected to recover, due to return to economic activities
• Risk of reverting to lock downs if pandemic resurges
• Global economic growth so far in line with expectations

OIL & GAS

• Global oil demand increased to 100mbpd in 4Q21
• Brent Oil prices declined due to emergence of new COVID variant and excess oil supplies due to SPR release and OPEC+ increase
• US and other key markets to release oil from reserves

DRILLING RIG

• Global upstream CAPEX to see slight uptick in 2022
• Jack-updrilling rig demand to increase in 2022 while supply is decreasing
• Utilization of drilling rig to gradually increase

Moderate outlook for the medium term

Private & Confidential

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OIL PRICE MOVEMENT - BRENT

	2016	2017		2018		2019	2020		2021
90												83
	(USD/bbl)
80					76					79
					75
											72
70					67		68		67			69
						63
					62			61	63		60
60			55
			52						52
		51	51							RISING OIL
50	47	47									45
							44	PRICES
40	35									33
30

20

10

Positives:	Negatives:
-	Global economic recovery	-	Risk of pandemic resurgence
-	Underinvestment in oil & gas	-	Increasing OPEC+ and US production
		-	Release of strategic oil reserves
		-	COP26 push for energy transition

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1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

Oct-21

Nov-21

OIL PRICES HAS MODERATED TO BELOW USD80/BBL

SINCE ITS RUN-UP IN OCTOBER 2021

Source : Markets Insider

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