KUALA LUMPUR (Feb 17): Hibiscus Petroleum Bhd’s net profit quadrupled to RM48.49 million for the second quarter ended Dec 31, 2021, from RM12.02 million a year earlier, on the back of improved operational performance and higher crude oil prices.

Earnings per share (EPS) jumped to 2.42 sen from 0.74 sen, according to the group's filing with Bursa Malaysia.

Quarterly revenue rose 49.46% to RM284.4 million, from RM190.29 million previously.

Hibiscus Petroleum said it sold 751,983 barrels of crude oil during the quarter, with 587,374 barrels at an average realised price of US$75.15 per barrel from North Sabah, and 164,609 barrels at an average price of US$72.02 from the Anasuria Cluster.

The oil & gas group did not declare a dividend for the quarter.

For the six-month period ended Dec 31, 2021, Hibiscus Petroleum’s net profit soared to RM90.01 million from RM22.05 million in the previous corresponding period, while revenue improved 58.17% to RM531.09 million from RM335.78 million.

Six-month EPS rose to 4.48 sen, from 1.37 sen previously.

In a statement, Hibiscus Petroleum said it expects to deliver a base volume of about 2.5 million to 2.7 million barrels of oil (boe) for the full financial year from North Sabah and Anasuria Cluster.

The group expects to produce an additional 2.5 million boe to its base volume expectations between the completion of the acquisition of Repsol assets in Malaysia and Vietnam on Jan 24, and the end of the financial year.                                     

Hibiscus Petroleum added that it has signed a prepayment agreement of up to US$80 million with Trafigura — which extends the existing facility to Dec 31, 2023 — which was utilised to part fund its Repsol acquisition.

“At current oil and gas prices, these additional volumes are going to substantially and favourably impact our financial performance, going forward,” the group said. 

At the time of writing, Brent crude oil prices have risen above US$90 per barrel, the highest level the commodity has seen in seven years.

“Since completion of the acquisition, daily production rates have almost tripled from about 8,000 boe per day to about 23,000 boe per day,” the statement wrote.

The statement added that Hibiscus Petroleum’s new group vision and mission is to achieve a target production of 35,000 to 50,000 boe per day, securing a total proven and probable reserves of 100 million boe by 2026 and becoming a net zero emissions producer by 2050.

Hibiscus Petroleum's shares closed one sen or 0.87% lower at RM1.14 on Thursday (Feb 17), valuing the group at RM2.29 billion based on 2.01 billion outstanding shares. Year to date, the oil & gas counter has gained 32 sen or 39.02% from 82 sen.