23-05-2025
Hibiscus Petroleum sees stronger cashflows, eyes growth despite UK levy impact
BIMB Research revised its 2025, 2026 and 2027 earnings forecasts for Hibiscus to RM331mil, RM515mil and RM430mil, respectively.
PETALING JAYA: Hibiscus Petroleum Bhd posted a net loss of RM115.97mil or loss of 15.4 sen a share for its third quarter ended March 31, of the financial year 2025 (3QFY25), due to a one-off, non-cash deferred tax liability charge of RM167.3mil related to the UK's Energy Profits Levy (EPL).
Barring that, the upstream oil company made a pretax profit of RM128.3mil on revenue of RM572.8mil for the period earned an average realised oil and condensate price of US$78.2 a barrel.
In a release, Hibiscus noted that excluding the levy, it would have posted a net profit of RM51.3mil for the quarter.
"The charge (EPL) is expected to be fully reversed to the Group's statement of profit or loss during the window for which the EPL regime applies, i.e. up to March 31, 2030," it stated.
For the nine months, Hibiscus' operating cashflows amounted to RM1.5bil, a 144% on-year increase compared to the same period in FY24.
Hibiscus added it sold a total of 2.1 million barrels of oil equivalent (MMboe) of oil, condensate and gas, and achieved an average production of 26,956 boe/day in 3Q25.
"The Group is well-positioned to sell 9.1 MMboe of oil, condensate and gas for FY25, exceeding FY24's volumes by 17%," it stated.
A fourth interim single-tier dividend of 1sen per ordinary share was declared on, resulting in declared total dividends of 8sen per ordinary share to date for FY25.
"We have made significant progress towards our longer term growth strategy in April 2025. The 20-year PM3 CAA (commercial arrangement area) PSC (production sharing contract) extension unlocks 26 MMboe of 2P reserves and 2C resources, significantly enhancing the value of our asset base. We look forward to monetising this potential as part of the broader PM3 CAA hub strategy, alongside the PKNB Cluster," managing director, Dr Kenneth Pereira, said.
Hibiscus added as of May 22, 2025, a total of 67.6 million shares have been purchased as part of its share buy-back programme, at an average price of RM1.99 per share. Of these, 36.6 million shares were cancelled in November 2024, while the remainder are retained as treasury shares.
