KUALA LUMPUR (May 28): Hibiscus Petroleum Bhd's net profit for the third quarter ended March 31, 2018 (3QFY18) jumped by 12.8 times to RM83.1 million or 5.26 sen per share, from RM6.49 million or 0.45 sen per share in the previous corresponding quarter.

The earnings were boosted by a "negative goodwill" of RM112.4 million — a one-off gain from the difference between the actual purchase price and the fair value of the asset at the completion date. The asset it acquired was 50% participating interests under the 2011 North Sabah Enhanced Oil Recovery (EOR) product sharing contract (PSC).

In addition, the company also enjoyed a tax credit of RM1.57 million.

Hibiscus' revenue was up by 8.9% to RM75.4 million in 3QFY18 as compared to RM69.2 million in 3QFY17.

The group's investment in a 50% participating interest under the 2011 North Sabah EOR PSC includes the management of the operations relating to the production of petroleum from four existing oil fields, namely St Joseph, South Furious, SF30 and Barton, as well as existing pipeline infrastructure, the Labuan Crude Oil Terminal (LCOT), and all other equipment and assets relating to the PSC and was completed in March this year.

The Anasuria segment recorded a profit before tax of RM20.1 million. The asset achieved average uptime of 82% against 57% and 70% recorded in 2QFY18 and 1QFY18 respectively.

"The planned offshore turnaround project that commenced in mid-Sept 2017 was completed in mid-Oct 2017. In addition, both the temporary malfunction of the Cook-P1 subsea production choke and the extended failure of a gas compression facility on-board the Anasuria FPSO that affected production in the Guillemot field encountered in the preceding quarter have been resolved," it said.

For the first nine months ended March 31, 2018 (9MFY18), the group's net profit also increased by 7.7% to RM105 million or 6.87 sen per share from RM97.4 million or 6.92 sen per share in 9MFY17.

The accumulative revenue grew by 12.3% to RM209.7 million from RM186.8 million during the same period.

"We are pleased that the completion of the North Sabah transaction proceeded as planned. We are now focusing on operating safely and efficiently. The group now has two assets in different geographies, each delivering positive cashflow against a backdrop of strengthening oil prices. Slowly but surely, we are building balance sheet resilience and steady earnings growth, and hope to continue to enhance stakeholder value," Hibiscus managing director Dr Kenneth Pereira said in a press release.

As of closing, Hibiscus' share price was down by 7.5 sen or 7.89% to 87.5 sen with about 45.4 million shares traded, giving it a market capitalisation of RM1.42 billion.