Aberdeen continues buying spree in Velesto, lifts stake to over 6pct
KUALA LUMPUR: Aberdeen Group plc has continued accumulating shares in oil and gas services provider Velesto Energy Bhd, lifting its stake past six per cent within a span of two weeks.
The United Kingdom-based investment firm, which emerged as a substantial shareholder in Velesto earlier this month, acquired an additional 24.98 million shares on May 20.
This raised its deemed interest in Velesto to 509 million shares, or 6.20 per cent of the company.
Aberdeen had first surfaced as a substantial shareholder on May 7 after acquiring 429.39 million shares, representing a 5.23 per cent stake.
In multiple bourse filings, Velesto said the shares were acquired via Citibank Bhd, which acted as custodian for "one or more funds" managed by subsidiaries of Aberdeen. The identities of the ultimate beneficiaries remain undisclosed.
Velesto, a key player in the upstream oil and gas sector, owns and operates six jack-up drilling rigs and offers hydraulic workover services through its integrated operations.
It also provides tubular goods inspection and threading services under its oilfield services arm.
Velesto's share price has declined 43.1 per cent over the past 12 months but has seen a modest year-to-date rebound, rising from 15.5 sen on January 2 to 16.5 sen currently.
For the financial year ended Dec 31, 2024, Velesto more than doubled its net profit to RM207.71 million, up from RM99.53 million a year earlier. Revenue also climbed 12.1 per cent to RM1.36 billion from RM1.21 billion.
The company reported a net margin of 15.3 per cent and return on equity of 8.2 per cent, according to Bursa Marketplace. Its current dividend yield stands at 7.6 per cent, among the highest in its sector.
At least eight analysts currently cover the stock, with a consensus 'Buy' rating and a 12-month average target price of 21 sen.
The company boasts strong fundamentals, including a low debt-to-capital ratio of 0.1 per cent and a dividend payout ratio below 50 per cent.
In March, Aberdeen emerged as a substantial shareholder in Eastern & Oriental Bhd with a 5.05 per cent stake, later increasing its holdings to 5.81 per cent.
Two years earlier, it took a 5.24 per cent stake in CTOS Digital Bhd, which has since grown to 14.99 per cent.
Headquartered in Edinburgh, Aberdeen Group plc, formerly abrdn plc, manages over £500 billion in global assets and is listed on the London Stock Exchange.
Its investment strategy is typically long-term and fundamental-based, often involving large mandates from institutional clients such as pension funds, insurers and sovereign funds.
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