KUALA LUMPUR (Feb 22): Hibiscus Petroleum Bhd's net profit grew 19.8% to RM12.02 million for the second quarter ended Dec 31, 2020 (2QFY21) from RM10.03 million on a quarter-on-quarter (q-o-q) basis, mainly due to a better performance by its North Sabah segment.

Revenue rose 30.7% to RM190.29 million, from RM145.59 million in 1QFY21, according to the group's filing with Bursa Malaysia.

Hibiscus Petroleum declared a first interim dividend of 0.5 sen per share, payable on April 8.

"As this marks our maiden dividend declaration, we have elected to be prudent but if oil prices maintain their upward trend, we hope that we are able to be more generous in the future," group chairman Zainul Rahim Mohd Zain said in a separate statement.

As at the time of writing, Brent crude oil futures stood at US$63.22 per barrel. Last week, it hit a 13-month high of US$64.34.

The North Sabah segment recorded earnings before interest, taxes, depreciation, and amortisation of RM66.4 million in 2QFY21, compared with RM46.2 million in 1QFY21.

The segment's revenue for the quarter was RM142.7 million, against RM98 million in 1QFY21, driven by a larger volume of crude oil that was sold. SEA Hibiscus sold 870,874 barrels of crude oil in three cargoes versus 592,453 barrels from two cargoes in 1QFY21.

Gross profit achieved by the North Sabah segment stood at RM76.2 million, against RM47.1 million in the previous quarter, mainly due to lower average operating expenses per barrel of US$13.32, compared with US$17.08 in 1QFY21.

Hibiscus Petroleum said that on a year-on-year basis, the group's net profit was down 76.6% from RM51.25 million in 2QFY20, as revenue fell 30% from RM271.85 million.

For the cumulative first six months of FY21, net profit declined 67.3% to RM22.05 million, from RM67.48 million in the same period of FY20, while revenue dropped 22.12% to RM335.78 million from RM431.15 million.

Looking ahead, Hibiscus Petroleum aims to produce 3.4 million barrels of oil safely and efficiently across both its assets.

Given current production performance and barring unforeseen circumstances, the group targets to deliver 12 crude oil offtakes in FY21 — eight from North Sabah and four from the Anasuria Cluster.

The group sold 1.12 million barrels of crude oil in 2QFY21. Four offtakes were conducted — three from North Sabah and one from Anasuria Cluster. Crude oil production, it said, remained unaffected by the cost optimisation measures and government-imposed movement restrictions.

The group also noted that the planning is ongoing for a 45-day offshore turnaround of the Anasuria FPSO in FY21. "The 2021 Offshore Turnaround is intended to improve the reliability and integrity of the Anasuria FPSO as well as to ensure a safe working environment," it added.

Hibiscus Petroleum's shares closed 1.5 sen or 2.13% lower at 69 sen today, valuing the group at RM1.21 billion. Some 50.96 million shares were traded. Over the past year, the counter has fallen 19.8% from 86 sen.