Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on August 21, 2019

KUALA LUMPUR: Hibiscus Petroleum Bhd’s net profit for the fourth quarter (4Q) ended June 30, 2019 plunged 75% to RM24.72 million, from RM98.75 million a year earlier, despite recording a higher revenue.

Quarterly revenue rose 28.4% to RM237.07 million from RM184.63 million, the independent oil and gas exploration and production company said in a filing with Bursa Malaysia.

For the full financial year 2019 (FY19), the group recorded a net profit of RM230.01 million, up 13%, compared with RM203.71 million in the previous year. Full-year revenue more than doubled to RM988.3 million from RM394.34 million previously.

In a separate statement, Hibiscus said the improvement in overall group’s performance was attributable to the contribution from its North Sabah asset, as this was the first full year that the Malaysian asset was under the group’s operatorship. It added that there was higher overall production from the Anasuria Cluster in the UK.

“For FY19, the group sold approximately 3.3 million barrels of crude oil across both assets with five offtakes from the Anasuria Cluster, and a further seven offtakes from North Sabah. This exceeded a previously disclosed target of delivering 2.7-3.0 million barrels for FY19,” Hibiscus said. “The group remains debt-free with an unrestricted cash balance of RM206.7 million as at June 30, 2019.”

Hibiscus managing director Dr Kenneth Pereira said both the North Sabah and the Anasuria Cluster are progressing through a capital expenditure programme to drill a total of nine wells in calendar year 2019 — two wells in the UK and a further seven in Malaysia.

He said the progress is consistent with its mission to enhance the group’s net production rate to 20,000 barrels of oil per day by 2021.

“Additionally, we have commenced the evaluation of options to develop the Marigold and Sunflower discovered oilfields in the UK, which hold significant potential to drive future earnings growth.

“We look forward to safely delivering all our projects and enhancing value for our shareholders,” Pereira added.

Yesterday, Hibiscus also announced that its unit SEA Hibiscus Sdn Bhd had completed the St Joseph Infill Drilling campaign in the 2011 North Sabah enhanced oil recovery production sharing contract (North Sabah PSC).

Hibiscus said the combined increase in production from the three infill wells for the St Joseph Infill Drilling campaign of over 3,200 barrels (bbls) per day has exceeded pre-drill expectations of approximately 2,600 bbls per day. It said this project is expected to add life of field gross reserves of 2.77 million stock tank bbls.

Pereira said these progresses are consistent with the group’s mission to enhance its net production rate to 20,000 barrels of oil per day by 2021.

“Additionally, we have commenced the evaluation of options to develop the Marigold and Sunflower discovered oilfields in the UK, which hold significant potential to drive future earnings growth,” he added.

SEA Hibiscus assumed operatorship of the North Sabah PSC on March 31, 2018, as a 50% joint venture working interest partner with Petronas Carigali Sdn Bhd.

The North Sabah PSC consists of St Joseph, South Furious, SF30 and Barton, four fields located offshore Sabah in Malaysia, which collectively produce for the Labuan Crude Oil Terminal.

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