Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Q1 FY2021 Earnings Presentation
28 slides from Hibiscus Petroleum Bhd's earnings presentation, Nov 27, 2020
Slide 1: Quarterly Results
Quarterly Results Highlights of the First Quarter Results for the period ended 30 September 2020 Briefing for Analysts and Fund Managers 27 November 2020
Slide 2: Disclaimer
Disclaimer The purpose of this presentation is to provide general information about Hibiscus Petroleum Berhad (the “Company”) to assist potential investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information that a prospective i
Slide 3: Content
Content Part 1: Oil Market and Company Outlook • Oil Market • Brent Oil Price Forecast • Islamic CRPS Fund Raising of RM203.6 million to Date • Decarbonisation Strategy Part 2: Group Financials Snapshot • 1Q FY2021 Group Financials (vs Previous Quarter) • Highlights from the Group’s Balance Sheet Pa
Slide 4: Oil Market and Company Outlook
Part 1 Oil Market and Company Outlook • Oil Market Outlook • Oil Market Balances • Brent Oil Price Forecast • Islamic CRPS Fund Raising of RM203.6 million to Date • Decarbonisation Strategy 4 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 5: Oil Market Outlook
Oil Market Outlook ▪ Rebound in Global Economic Growth Rates and High Rates of Efficacy of COVID-19 Vaccines • The IMF, in their World Economic Outlook report, projected that the global economy would rebound by 5.2% in CY2021 • COVID-19 vaccines announced have high rates of medical effectiveness ▪ O
Slide 6: Oil Market Balances
Oil Market Balances Source: Rystad Energy, as of 23 November 2020 6 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 7: Brent Oil Price Forecast
Brent Oil Price Forecast Source: Rystad Energy, as of 23 November 2020 7 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 8: Islamic CRPS Fund Raising of RM203.6 million to Date
Islamic CRPS Fund Raising of RM203.6 million to Date Battling Unprecedented Market Conditions Covid-19 Pandemic Economic Headwinds • Demand disruption globally • Weakening economic outlook impacting various industry worldwide, exacerbated by Oil Price Volatility ecosystems US Presidential trade tens
Slide 9: Decarbonisation Strategy
Decarbonisation Strategy Decarbonising is essential for Hibiscus to reach compliance to the 2050 net zero goals committed by the UK and PETRONAS Current Measures to reduce Greenhouse Gas (GHG) Emissions in North Sabah • In the process of establishing the SANGEA software to enhance the GHG calculatio
Slide 10: 1Q FY2021 Group Financials Snapshot
Part 2 1Q FY2021 Group Financials Snapshot • 1Q FY2021 Group Financials (vs Previous Quarter) • Highlights from the Group’s Balance Sheet 10 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 11: 1Q FY2021 Group Financials (vs. Previous Quarter)
1Q FY2021 Group Financials (vs. Previous Quarter) 1Q FY2021 RM’000 N. Sabah Anasuria Others1 Group Revenue 1Q 4Q FY2021 FY2020 Cargoes sold 2 1 - 3 North 592,453 bbls x 249,387 bbls x Revenue 97,965 46,582 946 145,493 Sabah USD39.46/bbl USD31.79/bbl 250,337 bbls x Gross Profit 47,059 28,001 946 76,0
Slide 12: Highlights from the Group's Balance Sheet
Highlights from the Group’s Balance Sheet A strong Balance Sheet As at As at As at As at As at RM 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 2020 2020 2020 2019 2019 Total assets 2,492.3m 2,426.2m 2,619.2m 2,567.8m 2,553.2m Shareholders’ funds 1,196.8m 1,221.3m 1,366.0m 1,290.1m 1,261.6m Cash and bank balan
Slide 13: Malaysia – 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract
Malaysia – Part 3 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract • Operating Performance Metrics • Status of Production Enhancement Projects • Awards Won • Key Factors Affecting Quarterly Results • Consistent EBITDA Margins Despite Varying Oil Prices 13 Hibiscus Petroleum Berhad
Slide 14: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Unit 20202 2020 2020 2019 Average uptime % 86 94 89 93 Average gross oil production bbl/day 16,895 18,780 17,395 17,076 Average net oil production bbl/day 6,251 6,949 6,436 6,318 Cargoes sold - 2 1 2 2 Total oil sold bbls 592,453
Slide 15: Status of Production Enhancement Projects
Status of Production Enhancement Projects Production enhancement projects will help arrest natural decline and increase gross oil production Project Project Description Total Gross CAPEX Status • Drilling and completion of 1 infill water SF30 Water Flood injection well intended for reservoir re- • R
Slide 16: Awards Won
Awards Won Malaysia Upstream Awards 2020 Best Emerging Petroleum Wells Excellence Category – Drilling Excellence Category – Arrangement Contractor GOLD Award BRONZE Award 2020 PETRONAS Focused Recognition Award Successful delivery of St Joseph Minor and Major Sands Field Development Plan (FDP) – Dem
Slide 17: Key Factors Affecting North Sabah's 1Q FY2021 Financial Results
Key Factors Affecting North Sabah’s 1Q FY2021 Financial Results Key factors: Financials RM’000 • 2 offtakes – 592,453 bbls @ USD39.46/bbl average realised price. • Despite low average realised price, the asset achieved reasonably high Revenue 97,965 gross profit and EBITDA margins. Gross Profit 47,0
Slide 18: Consistent EBITDA Margins Despite Varying Oil Prices
Consistent EBITDA Margins Despite Varying Oil Prices • North Sabah’s EBITDA margins have maintained within a consistent range since acquisition despite fluctuations in oil prices. North Sabah’s EBITDA margin in 4Q FY2018 and 4Q FY2020 exclude the impact of negative goodwill of RM93.8 million and rev
Slide 19: United Kingdom – The Anasuria Cluster
Part 4 United Kingdom – The Anasuria Cluster • Operating Performance Metrics • Status of Production Enhancement Projects • Key Factors Affecting Quarterly Results • Strong EBITDA Margins Despite Varying Oil Prices 19 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 20: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Units 2020 2020 2020 2019 Average uptime % 94 85 89 85 Average net oil production rate bbl/day 2,753 2,539 2,802 2,680 1 Average net gas export rate boe/day 330 322 375 288 Average net oil equivalent boe/day 3,084 2,861 3,177 2,96
Slide 21: Status of Production Enhancement Projects
Status of Production Enhancement Projects Completion Project Project Description Status (Calendar Year) Subsea Installation of a new pipeline from the Guillemot field Work in 2021/22 Debottlenecking* to increase liquid production capacity. Progress Opportunity to drill 1 infill well in the Guillemot
Slide 22: Key Factors Affecting Anasuria's 1Q FY2021 Financial Results
Key Factors Affecting Anasuria’s 1Q FY2021 Financial Results Key factors: • 1 offtake – 250,337 bbls @ USD41.99/bbl average realised price. (There was Financials RM’000 no offtake in 4Q FY2020.) Revenue 46,582 • EBITDA margin of 45.9%, despite relatively low average realised price due to Gross Profi
Slide 23: Strong EBITDA Margins Despite Varying Oil Prices
Strong EBITDA Margins Despite Varying Oil Prices 23 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 24: United Kingdom – Marigold & Sunflower
Part 5 United Kingdom – Marigold & Sunflower • Target Development Milestones 24 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 25: Target Development Milestones
Target Development Milestones • Development Concept to drill and complete subsea wells and tieback to an FPSO via pipelines has been selected as this concept provides the highest project value with the lowest execution and commercial risk. ‒ The project is expected to proceed in two phases to optimi
Slide 26: Key Messages
Part 6 Key Messages 26 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 27: Key Messages
Key Messages ▪ Hibiscus Petroleum, as part of business continuity, has enacted various measures to mitigate the spread and impact of COVID-19 within our organisation as the health and safety of our personnel remains of upmost importance. ▪ We sold 842,790 barrels of oil in Q1 FY2021 and aim to produ
Slide 28: Thank You
Thank You For more information please contact: Investor Relations Team faq@hibiscuspetroleum.com 28 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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