Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — CGS International 17th Annual Malaysia Corporate Day 2025
28 slides from Hibiscus Petroleum Bhd's conference presentation, Jan 8, 2025
Slide 1: Delivering Volumes, Enhancing Value
DELIVERING VOLUMES, ENHANCING VALUE CGS INTERNATIONAL 17TH ANNUAL MALAYSIA CORPORATE DAY 8 JANUARY 2025
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: Agenda
AGENDA DELIVERING VOLUMES, ENHANCING VALUE MACRO O&G GROWTH WHY INVEST 01 02 OVERVIEW 03 04 OUTLOOK FRAMEWORK IN HIBISCUS 3
Slide 4: Macro O&G Outlook
MACRO O&G OUTLOOK
Slide 5: Our View: Increasing Global Demand Will Cause Oil Prices to Trend Higher
OUR VIEW: INCREASING GLOBAL DEMAND WILL CAUSE OIL PRICES TO TREND HIGHER Primary Driver Growth potential outside OECD Secondary Drivers • Increasing energy demand from artificial intelligence data centres • Reliance on hydrocarbons despite EV adoption • No viable alternatives for oil in aviation, ch
Slide 6: Our View: Production Indicators and Energy Industry Realities Indicate Prices Will Increase
OUR VIEW: PRODUCTION INDICATORS AND ENERGY INDUSTRY REALITIES INDICATE PRICES WILL INCREASE US oil production has been responsible Other global liquids US liquids production (including biofuels, refinery gains, NGLs etc) for meeting demand growth but now 105 100 priorities are on shareholder returns
Slide 7: Why We Think Oil Prices Will Remain Strong – Demand: Supply Gap
WHY WE THINK OIL PRICES WILL REMAIN STRONG – DEMAND: SUPPLY GAP Total Liquids Supply vs Demand* (mb/d) ▪ Base case (1.9oC) demand 140 Under development onshore scenario requires a 120 Demand RE 2.2°C cumulative 550 billion 100 Under development offshore barrels to be sanctioned 80 Demand RE 1.9°C OI
Slide 8: Overview
OVERVIEW
Slide 9: Hibiscus at a Glance
HIBISCUS AT A GLANCE Production with Development & Geographic Diversification Driving Growth, & Operational Exploration Upside Across Stable Regions Excellence United Kingdom 5 5 • 2025-2026 CAPEX funded Producing Development by internal cashflows and assets opportunities borrowing facilities • Outp
Slide 10: Emerging as a Prominent Player in Southeast Asia
EMERGING AS A PROMINENT PLAYER IN SOUTHEAST ASIA Enhanced returns through value-accretive acquisitions 2016 2018 NORTH SEA, U.K. 2022 IRR* 689% IRR* 298% (vs. 36% at SPA)1 (vs. 15% at SPA)2 2024 VIETNAM 2022 MALAYSIA- MALAYSIA VIETNAM Anasuria Cluster CAA North Sabah IRR* 96% BRUNEI (vs. 46% at SPA)
Slide 11: Delivered Growth Responsibly
DELIVERED GROWTH RESPONSIBLY 5-YEAR BUSINESS GROWTH ACHIEVED ENERGY TRANSITION GOALS > 3x 20% ~50% +69% +258% reduction in GHG emissions gas production portfolio 2P reserves RRR Daily production FY2020-FY2024 post-Brunei > 4x > 6x > 9x EXCEEDED FY2024 GUIDANCE Revenue EBITDA PAT > 8x > 2x > 8x 7.85
Slide 12: Growth Framework
BUSINESS GROWTH FINANCIAL FRAMEWORK INVESTOR
Slide 13: Growth Framework
GROWTH FRAMEWORK Towards achievement of 2026 Corporate Mission and beyond Monetise Near-term Execute to Monetise 2024/2025 Value Triggers Value Triggers Business Strategy Sustain Develop ≥2026 Value Triggers for Longer-term Growth a Sustainable Business Maintain Financial Financial Discipline and Fi
Slide 14: Growth Framework
GROWTH FRAMEWORK Towards achievement of 2026 Corporate Mission and beyond Monetise Near-term Execute to Monetise 2024/2025 Value Triggers Value Triggers Business Strategy Sustain Develop ≥2026 Value Triggers for Longer-term Growth a Sustainable Business Maintain Financial Financial Discipline and Fi
Slide 15: Organic Value Drivers
ORGANIC VALUE DRIVERS Ongoing projects / opportunities for monetisation - 2024 onwards BRUNEI NORTH SABAH ANASURIA PENINSULA Acquisition of South Furious 30 Water Near-term development Potential extension of PM3 Block B MLJ gas Flood Phase 2 Production of CAA PSC beyond 2027; producing field Enhance
Slide 16: Brunei: Acquisition of Block B MLJ Gas Producing Field
BRUNEI: ACQUISITION OF BLOCK B MLJ GAS PRODUCING FIELD Acquired 37.5% in Block B MLJ Field in October 2024 Unmanned 3 platforms in shallow waters 15 Active wells 1 Onshore processing plant ✓ Producing Gas Asset Concession Tenure ✓ Cash Generating Up to 23 Nov ✓ Operatorship 2029/2039 16
Slide 17: Peninsula: Potential Extension of PM3 CAA PSC Beyond 2027; PM3 Master Hub Plan
PENINSULA: POTENTIAL EXTENSION OF PM3 CAA PSC BEYOND 2027; PM3 MASTER HUB PLAN PM3 CAA Bunga Aster discovery PKNB Cluster PSC 2024 Potential PSC Discovered fields 4 Substantial gas resources with tie-back opportunities to existing structure extension beyond 2027 Operated PSC Expiry Net 2C Interest Y
Slide 18: Closing In on Achieving Our 2026 Targets
CLOSING IN ON ACHIEVING OUR 2026 TARGETS Estimated Net Production (boe/d) 2P Reserves (MMboe) Peninsula North Sabah Anasuria Cluster Brunei Oil Gas 50k 100.0 Target Range 77.8 35k 31k 35k 57.4 22k CY2024 CY2025 CY2026 2026 Target As of 1 Jul 2024 After Brunei Acquisition On track to meet 2026 net pr
Slide 19: Growth Framework
GROWTH FRAMEWORK Towards achievement of 2026 Corporate Mission and beyond Monetise Near-term Execute to Monetise 2024/2025 Value Triggers Value Triggers Business Strategy Sustain Develop ≥2026 Value Triggers for Longer-term Growth a Sustainable Business Maintain Financial Financial Discipline and Fi
Slide 20: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Guiding principles assuming USD70 bbl Brent, selective and disciplined deployment CASHFLOW WATERFALL KEY PRINCIPLES CONTROL LEVERS Priority Spend Investment Criteria Target Criteria Funding 1 Debt Servicing Work program & Minimum Annual Dividend IRR ≥ 15% Internal cash 2
Slide 21: Growth Framework
GROWTH FRAMEWORK Towards achievement of 2026 Corporate Mission and beyond Monetise Near-term Execute to Monetise 2024/2025 Value Triggers Value Triggers Business Strategy Sustain Develop ≥2026 Value Triggers for Longer-term Growth a Sustainable Business Maintain Financial Financial Discipline and Fi
Slide 22: Returning Free Cashflows to Shareholders
RETURNING FREE CASHFLOWS TO SHAREHOLDERS Increasing returns via dividends and share buybacks Total Payout Share Buybacks (Dividends + Share Buybacks as a % of Net Profit) (since Dec 2023 to 31 Dec 2024) 18% 13% 36.6m 9.8m Shares Shares (Cancelled) (Treasury) 6% RM98.9m in Cost FY2022 FY2023 FY2024 R
Slide 23: Increasing Dividend Trend
INCREASING DIVIDEND TREND Actual Dividend Track Record Dividend Guidance 5.1 4.3 4.1 Div. 12 2.9 4.0 Yield 2.2 2.0 (%) Minimum target for FY2025 2.0 10 0.0 >13% 8 8.50 OR 10.00 -2.0 8.00 DPS 7.50 -4.0 (sen) 6 6.25 Maiden -6.0 4 Dividend 5.00 -8.0 3.75 Brent ≥ USD70 Brent ≥ USD80 2 -10.0 FY2021A FY20
Slide 24: Why Invest in Hibiscus?
WHY INVEST IN HIBISCUS?
Slide 25: We Have Outperformed Our Peers
WE HAVE OUTPERFORMED OUR PEERS…. Outperformed industry peer average over the past 5 years EBITDA Margin Blue Peer Average Red Hibiscus 5-Year Revenue CAGR 64% 54% 49% 47% 22% 33% 51% 47% 42% 34% 27% Net Profit Margin 38% 13% 17% 17% 13% -8% 1% 4% -5% 1% -56% Return on Equity 36% 8% 16% 16% -4% 4% 10
Slide 26: But We Lag Behind in Valuations
BUT WE LAG BEHIND IN VALUATIONS … EV/EBITDA EV/2P EV/Production (USD’000) P/E 15.1 9.4 2.2 5.3 8.4 3.0 1.0 4.0 Hibiscus Peer Average Hibiscus Peer Average Hibiscus Peer Average Hibiscus Peer Average Source: Bloomberg and respective peer companies’ latest presentations as of 2 Jan 2025 | Trailing 12-
Slide 27: Time for a Re-Rating
TIME FOR A RE-RATING … Robust Platform for Growth Acquisitions from oil majors Partnership with national oil companies Financial resilience ▪ Experienced & competent team ▪ Builds credibility ▪ Cash generating assets ▪ Well maintained facilities ▪ Robust reviews ▪ Multiple funding sources ▪ Enhances
Slide 28: Thank You
THANK YOU For more information, please contact faq@hibiscuspetroleum.com
Hibiscus Petroleum Berhad — CGS International 17th Annual Malaysia Corporate Day 2025 on 6ix