Hibiscus Petroleum Berhad is engaged in the exploration, development and production of oil and gas, investment holding and the provision of project management, technical and other services relating to the oil and gas exploration and production industry.
Our key activities are focused on monetising producing oil fields and growing our portfolio of development and producing assets in areas of our geographical focus: Malaysia, the United Kingdom and Australia. – AR 20
Chairman Statement
There has been a great deal of media coverage on the climate change movement (the push for net-zero emissions) and the drive towards the use of renewable sources of energy. The shift away from the use of fossil fuels is clearly tangible and we support the fact that positive regulatory actions and large investments are being directed towards renewables, the emerging source of energy for the future.
We are also looking at integrating renewable energy initiatives with oil and gas opportunities. This is fast becoming an area of interest for many companies in the oil and gas space and we are no exception. To spearhead our focus in this area, we have established a “New Energy Ventures” group. Our initial investment in this area will be modest but will gradually be ramped up in the coming years. – AR 20
Earning and outlook
Hibiscus Petroleum (Hibiscus) reported core net profit of RM14.1m in 1QFY21 on the back of RM145.5m revenue. Three offtakes were done during the quarter with oil sold totaling 842,790 bbls at realized price of c. USD40/bbl on average. Though total oil sold was higher than the 606,958 bbls in 1QFY20 via only two offtakes, the realized oil price recognized in 1QFY20 was relatively higher at c. USD61/bbl on average, explaining the lower performance recorded on a YoY basis.
We are leaving our forecast unchanged as we expect earnings to improve gradually in line with progressive recovery in oil prices. Catalyst for the Group at this current operating climate is the acquisition of new producing assets which will boost its earnings immediately. We maintain our earnings forecast and DCF-based TP of RM0.65. Maintain Neutral. – Kenanga
Analyst Target Price
| Date | Target Price | Upside/Downside | Price Call | Source |
|---|---|---|---|---|
| 21/01/2021 | 0.65 | +0.07 (12.07%) | HOLD | PUBLIC BANK |
| 30/11/2020 | 0.56 | -0.05 (8.20%) | HOLD | BIMB |
TOP 10 Shareholders
| INVESTOR NAME | % O/S | POSITION (M Shares) | POSITION CHG (M) | VALUE(M USD) | FILING DATE |
| Polo Investments Ltd. | 8.75 | 138.9 | 0 | 10.95 | 18-Mar-20 |
| Hibiscus Upstream Sdn. Bhd. | 6.85 | 108.77 | -60 | 13.44 | 12-Nov-20 |
| Lazard Asset Management, L.L.C. | 3.36 | 53.44 | 5.81 | 12.19 | 30-Sep-19 |
| Kenanga Investors Berhad | 2.59 | 41.17 | -1.15 | 9.39 | 30-Sep-19 |
| Hong Leong Asset Management Bhd. | 1.89 | 30 | 10 | 6.85 | 30-Sep-19 |
| Lim (Ai Ling) | 1.86 | 29.53 | 8.53 | 6.74 | 30-Sep-19 |
| Littleton Holdings Pte. Ltd. | 1.78 | 28.27 | 0 | 5.87 | 15-Jan-20 |
| DBS Bank Ltd. | 1.58 | 25.15 | 0 | 5.22 | 15-Jan-20 |
| Principal Asset Management Berhad | 1.33 | 21.19 | -4.1 | 4.83 | 30-Sep-19 |
| Allianz Life Insurance Malaysia Berhad | 1.28 | 20.29 | 20.29 | 4.63 | 30-Sep-19 |