I thought it was skyrocketing. This is the situation experienced by Velesto Energy Bhd investors after witnessing the drastic fall in the company's shares today.
Velesto lost more than 30% to open as low as 20 sen early this morning before falling further to 18.5 sen at the opening of Bursa trading in the afternoon session.
What happened?
This fall was caused by Velesto's dismal earnings report which reported a net loss of RM26 million in the fourth quarter ending 31 December 2022.
It decreased significantly compared to the net profit recorded a year ago of RM5.43 million because it was affected by an increase in operating expenses, financial costs and higher taxes.
Velesto's revenue shrank despite higher quarterly revenue of RM243.07 million from RM158.48 million a year ago.
As a result, Hong Leong Investment Bank Research (HLIB) lowered the 'sell' price target for Volesto to 21 sen from 29 sen.
Velesto Energy Bhd is a multinational service provider based in Malaysia for the oil and gas industry sector.
