Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (May 2024)
46 slides from Hibiscus Petroleum Bhd's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION Logo MAY 2024 www.hibiscuspetroleum.com www.hibiscuspetroleum.com 1
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: Hibiscus at a Glance
HIBISCUS AT A GLANCE Malaysia’s first listed independent E&P Company 4 4 22,191 boe/day USD 28 /boe 60.9 MMboe 59.1 MMbbl Producing assets Development opportunities Net production rate Net OPEX Net 2P Reserves Net 2C Resources Figures above are as of 31 December 2023 or 2QFY24 Set to double net prod
Slide 4: Shareholder Return
SHAREHOLDER RETURN A proxy of Brent Crude Oil with improving dividend yield Outperforming Brent index Implied dividend yield of 2.9% for FY2024 2.9 3 10 2.5 Price movement since Jan-2022 2.5 2.2 9 8 1.7 7 7.50 2 6 1.5 6.25 5 1 5.00 4 3 Maiden 3.75 2 dividend 0.5 1 0 0 +27.3% FY2021A FY2022A FY2023A
Slide 5: Shareholding Details
SHAREHOLDING DETAILS Highly liquid stock with a strong institutional following Highly liquid and actively traded counter Strong Institutional following2 RM 2.07b 798.6m Retail Investors Market cap1 Total number of outstanding 24.5% shares in issue1 Management Institutional + 79% 4.62m 9.9% Corporate
Slide 6: Leadership Team
LEADERSHIP TEAM Board of Directors Zainul Rahim bin Dr Kenneth Dato’ Sri Roushan Thomas Michael Dato’ Dr Zaha Rina Emeliana Dallan Zaidah binti Ibrahim Mohd Zain Gerard Pereira Arumugam Taylor binti Zahari Rice-Oxley Independent Non- Non-Independent Non- Managing Director Non-Independent Non- Senior
Slide 7: Our Assets
@ Hisiscus Petroleum
Slide 8: Current Portfolio of Reserves
CURRENT PORTFOLIO OF RESERVES Hibiscus is the operator for all the producing assets Anasuria Cluster 50%^ 2P Oil 16.2 MMbbl | 2P Gas 0.9 MMboe Net 2P Oil Reserves Fyne 42.5% 2C Oil 4.0 MMbbl Teal West 70% Block 46 Cai Nuoc 2P Oil 0.2 MMbbl 49.9 100% 2P Oil 4.3 MMbbl MMbbl 19.3% Blocks 21/19c & 21/20
Slide 9: Reserves Have More Than Doubled Since 2017
RESERVES HAVE MORE THAN DOUBLED SINCE 2017 More growth to come with 60.6 MMbbl of 2C Resources left untapped Net 2P Reserves and 2C Resources (MMboe) Peninsula Acquisition North Sabah 70.2 Acquisition 60.6 71.0 74.2 63.0 38.5 12.9 12.7 6.7 59.4 54.3 46.0 50.7 46.1 48.7 25.7 30/6/2017 30/6/2018 30/6/
Slide 10: Net Production Rate Has Increased ~6x Since FY2017
NET PRODUCTION RATE HAS INCREASED ~6X SINCE FY2017 Strong positive impact through acquisition of quality assets Group Net Production Rate (boe/day) Peninsula Acquisition +119.7% 20,013 20,017 North Sabah Acquisition +144.1% 9,120 9,109 8,545 8,356 3,500 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY20
Slide 11: Replenishment Record
REPLENISHMENT RECORD Successful reserves replacement, strong IRRs, & short payback periods Asset Replenishment Record (MMboe) Anasuria Peninsula North Sabah Cluster Hibiscus 2016 2018 2022 Internal Rate of 689% 298% 63% Return (IRR) Total Net Production Payback Period < 1 year < 1 year 3 years Reser
Slide 12: Asset License Tenures
ASSET LICENSE TENURES Net 2P oil and gas reserves to last up until 2040 with ongoing discussions to extend license tenures 2P Oil 2P Gas Name of Asset Country (MMbbl) (MMboe) 2020 2025 2030 2035 2040 2045 North Sabah PSC Malaysia 18.8 - Kinabalu PSC Malaysia 7.1 - Malaysia-Vietnam PM3 CAA PSC 3.3 10
Slide 13: Operational Metrics
OPERATIONAL METRICS Production and sales have risen through a series of strategic acquisitions Net Oil Production and Sales (MMbbl) Net Gas Sold (MMscf) Steady growth in net oil and condensate production and sales driven by Strong uptick in gas sales post acquisition of PM3 CAA PSC in January strate
Slide 14: Growth Plan
GROWTH PLAN 8 Hieiscus Petroleum
Slide 15: 3-Year Growth Strategy
3-YEAR GROWTH STRATEGY Three-pronged approach to double production rate and grow 2P reserves to 100MMboe by 2026 Est. Net Production (boe/day) ~2x 35k to 50k 24k 22k 22k Convert development assets to Develop 3-pronged Growth Strategy producing assets 2023 2024 2025 2026 Enhance output and extend Pen
Slide 16: Deploying CAPEX
DEPLOYING CAPEX Asset monetisation and potential acquisitions of producing assets CAPEX (US$ m) Asset Key Highlights FY2024 FY2025 UK: Teal West Development: Teal West 18 80 UK: Anasuria Upgrade: FPSO facility 14 10 MY: Kinabalu Development: KNWD-18 well 48 18 MY-VT: PM3 CAA Exploration: Bunga Aster
Slide 17: Asset Enhancement Record
ASSET ENHANCEMENT RECORD Skilled in stabilising and increasing production rate post-acquisition NORTH SABAH PENINSULA Previous Operator Hibiscus Previous Operator Hibiscus 94% 97% 96% 25 90% 91% 92% 92% 93% 92% 90% 91% 89% 100 93% 95% 86% 92% Gross Production (kboe/d) 88% Gross Production (kbbl/d) 2
Slide 18: ESG Initiatives
ESG INITIATIVES efiiciscu
Slide 19: Our ESG Pillars
OUR ESG PILLARS Alignment with the United Nations’ Sustainable Development Goals (UN SDG) ENVIRONMENTAL SOCIAL GOVERNANCE Portfolio Resilience Occupational Safety Increasing Natural Gas Reserves Zero Fatality and zero Lost Time Injury Frequency Strong Risk Management Constituent of FTSE4Good Bursa M
Slide 20: Towards Net Zero 2050
TOWARDS NET ZERO 2050 Target to reduce 50% of GHG Scope 1 and 2 Emissions by FY2030 Membrane Membrane Phase 1 Membrane Phase 2 Phase 3 SF Pressure Debottlenecking Maintenance project Future initiatives - 50% Scope 1 + 2 Shift in energy sources New technologies, CCUS 3.15 MMt CO₂e 1.57 MMt CO₂e FY202
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS HiBiscu
Slide 22: Segmental P&L Highlights
SEGMENTAL P&L HIGHLIGHTS Consistent annual and sequential growth in topline and profitability Revenue (RM million) EBITDA (RM million) 713.1 746.6 393.0 353.3 627.5 326.5 325.3 291.6 523.3 503.6 1,269.7 2,344.8 1,082.7 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 1,696.5 718
Slide 23: Balance Sheet Overview
BALANCE SHEET OVERVIEW Robust balance sheet on the back of growing unrestricted cash balance and total assets Total Assets and Shareholders’ Funds (RM million) Unrestricted cash and Total Debt (RM million) Total Assets and Shareholders’ Funds expanded on the Healthy net cash position to support CAPE
Slide 24: Strong and Consistent EBITDA Margins
STRONG AND CONSISTENT EBITDA MARGINS • Proven track record in navigating downturns • Operational control over assets gives us flexibility to adapt expenditures PENINSULA NORTH SABAH ANASURIA 90 100% 120 100% 120 100% 80 90% 90% 90% 85 112 100 100 70 78 80% 80% 80% 98 97 97 97 68 70% 90 93 70% 92 70%
Slide 25: Peer Comparison
PEER COMPARISON
Slide 26: Trading at a Discount vs Peers
TRADING AT A DISCOUNT VS PEERS Potential upside based on EV/EBITDA metrics PEER GROUP EV/2P (US$) PEER GROUP EV/EBITDA (x) 4x 12x 3x 8x Peer Median = 6.90 2x Peer Median = 1.46 5.88 4x 1.40 1x 0x N.M. 0x Source: Bloomberg (EV = Enterprise Value as of 12 March 2024 (USD), EBITDA = Trailing 12 months
Slide 27: Investment Merits
INVESTMENT MERITS Growth target supported by untapped resources and strong capital position to support development Growth Strategy to double daily production rate by 2026 Operation Track record of operational excellence, skilled in continuously enhancing efficiencies of current assets Capital Strong
Slide 28: Thank You!
THANK YOU! For more information please contact faq@hibiscuspetroleum.com
Slide 29: Overview of PM3 CAA PSC
OVERVIEW OF PM3 CAA PSC A low cost producing asset with long production history; possesses material future developments PM3 CAA 7 1997 2027 Producing fields Production Start Date PSC expiry Kinabalu 2 5.7 MMbbl 64.8 Bscf North Sabah Exploration fields Net 2P Oil Reserves Net 2P Gas Reserves Ownershi
Slide 30: PM3 CAA PSC
PM3 CAA PSC Stable gas lift operations and successful well work activities PM3 CAA Average Net Oil and Gas Production Rate (boe/day) Drilling Campaign • Bunga Aster exploration drilling to Kinabalu Sustained oil production from the H4 reservoir, stable gas lift operations, and commence following com
Slide 31: Overview of Kinabalu PSC
OVERVIEW OF KINABALU PSC Low-cost liquids producing asset with ongoing redevelopment projects; close proximity with North Sabah PM3 CAA 3 1997 2032 7.8 MMbbl Kinabalu Producing fields Production Start Date PSC expiry Net 2P Oil Reserves North Sabah Ownership Structure Off-taker PETRONAS Vietnam Cari
Slide 32: Kinabalu PSC
KINABALU PSC Successful infill drilling programme PM3 CAA Average Net Oil Production Rate (bbl/day) Kinabalu KNWD-18 (First Oil in Aug 2023) and KNWD-08ST1 (First Oil in Oct 2023) infill wells producing well above targets 4,096 North Sabah 2,759 2,704 2,602 Vietnam United Kingdom Australia 3QFY23 4Q
Slide 33: Overview of North Sabah PSC
OVERVIEW OF NORTH SABAH PSC Asset includes the Labuan Crude Oil Terminal which processes 50K oil barrels per day PM3 CAA 4 1979 2040 Producing fields Production Start Date PSC expiry Kinabalu 19.7 MMbbl 9.0 MMbbl North Sabah Net 2P Oil Reserves Net 2C Oil Resources Ownership Structure Off-taker Viet
Slide 34: North Sabah PSC
NORTH SABAH PSC Completion of near-field drilling campaign at South Furious PM3 CAA Average Net Oil Production Rate (bbl/day) Near-Field Drilling Campaign Better wells performance at the Barton and South Furious 30 fields South Furious Ungu Well & South Furious Kinabalu Ungu ST Well 5,133 • Lab anal
Slide 35: Overview of Block 46 Cai Nuoc PSC
OVERVIEW OF BLOCK 46 CAI NUOC PSC Producing field is tied back to PM3 CAA’s facilities with potential to unlock undeveloped Hao Mai field PM3 CAA 1 2003 2027 Producing field Production Start Date PSC expiry Kinabalu 1 0.2 MMbbl Development field North Sabah Net 2P Oil Reserves Ownership Structure Of
Slide 36: Overview of Anasuria Cluster
OVERVIEW OF ANASURIA CLUSTER Prominent location in the North Sea PM3 CAA 4 1996 2035 16.6 MMbbl Kinabalu Producing fields Production Start Date Economic Life Net 2P Oil Reserves North Sabah Effective Ownership Marketing Agreement with Hibiscus’ Vietnam Asset Name Asset Type Stake Guillemot A Produci
Slide 37: Further Opportunities at the Anasuria Cluster
FURTHER OPPORTUNITIES AT THE ANASURIA CUSTER Strong growth opportunities through our 100% owned development asset – Teal West PM3 CAA Exciting Tie back opportunity in Teal West Kinabalu July Sep North Sabah 2023 2023 Environmental Final Investment Statement (ES) Decision (FID) Vietnam was approved w
Slide 38: Potential Game Changer Development Assets in the UK
POTENTIAL GAME CHANGER DEVELOPMENT ASSETS IN THE UK Marigold and Sunflower fields – First oil expected in 2028 PM3 CAA Future Opportunities around Marigold: Marigold Asset Kildrummy and Crown Discoveries Marigold and Sunflower are located Kinabalu north-east of Aberdeen, UK Ithaca Energy 30% Direct
Slide 39: Anasuria Cluster
ANASURIA CLUSTER Teal West to produce First Oil by end-CY2025 PM3 CAA Average Net Oil and Gas Production Rate (boe/day) Teal West Kinabalu Shutdown of the Anasuria FPSO for 15 days in October 2023 for planned maintenance activities • Supply chain delivery issues leading to the subsea tie-back 2,699
Slide 40: Overview of Australia Assets
OVERVIEW OF AUSTRALIA ASSETS Exposure to the prolific O&G producing province – Bass Strait PM3 CAA Key Highlights Ownership Structure Direct Interest Kinabalu 2013 2026 Direct Award Date Licence Expiry Interest North Sabah 100.0% 8.0 MMbbl Hibiscus Net 2C Oil Reserves Vietnam VIC/P79 WA/527-P T/49P
Slide 41: Overview of Australia Assets
OVERVIEW OF AUSTRALIA ASSETS Exposure to the prolific O&G producing province – Bass Strait Key Highlights Ownership Structure Direct Interest 2013 2026 Direct Award Date Licence Expiry Interest 100.0% 8.0 MMbbl Hibiscus Net 2C Oil Reserves VIC/P79 WA/527-P T/49P Effective Ownership (through our 9.34
Slide 42: Profiles: Board of Directors
PROFILES: BOARD OF DIRECTORS Zainul Rahim bin Mohd Zain, Non-Independent Non-Executive Chairman • Appointed to the Board in December 2010. • Serves on the Boards of Standard Chartered Saadiq Berhad and the Malaysian Dutch Business Council. • Previously Board member of UKM Holdings Sdn Bhd, Bank Pemb
Slide 43: Profiles: Board of Directors
PROFILES: BOARD OF DIRECTORS Dato’ Dr Zaha Rina Zahari, Independent Non-Executive Director • Appointed to the Board in September 2017. • More than 34 years of experience in financial (including Islamic), commodities and securities industry and the developing of the Malaysian Financial Market, M&A in
Slide 44: Profiles: Key Management
PROFILES: KEY MANAGEMENT Yip Chee Yeong, Chief Financial Officer • Joined Hibiscus in November 2013; previously VP Finance & Group Controller in Hibiscus. • Has over 29 years of accounting and finance experience in various industries, namely oil and gas, manufacturing, technology, services, risk con
Slide 45: Profiles: Key Management
PROFILES: KEY MANAGEMENT Lim Kock Hooi, Group General Counsel • Joined Hibiscus in October 2014. • Over 33 years of experience in oil & gas law practice, both as in-house counsel and external counsel, covering asset transactions, project documentation, and management and resolution of project execut
Slide 46: Profiles: Key Management
PROFILES: KEY MANAGEMENT Dr Ambrose Gerard Corray, VP InfoTech & Digitalisation • Joined Hibiscus in January 2019. Previously consulted for Hibiscus from bid submission for North Sabah asset in 2016 through transition and transfer in March 2018. • Over 40 years oil and gas industry global experience
Hibiscus Petroleum Berhad — Investor Presentation (May 2024) on 6ix