Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (January 2022)
52 slides from Hibiscus Petroleum Bhd's investor presentation, January 2022
Slide 1: An Insight Into Hibiscus Petroleum Berhad
An Insight Into Hibiscus Petroleum Berhad January 2022 R1
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: Introduction to Hibiscus Petroleum Part 2: Malaysia – 2011 North Sabah EOR PSC Part 3: United Kingdom – Anasuria Cluster Part 4: United Kingdom – Marigold & Sunflower Part 5: Australia – Bass Strait Assets Part 6: Financial Performance Part 7: Key Messages Appendix: Additional Inform
Slide 4: Introduction to Hibiscus Petroleum Berhad
Part 1 Introduction to Hibiscus Petroleum Berhad Malaysian Pure Play E&P Company 4 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 5: Hibiscus Today
Hibiscus Today Revenue generating and profitable production operations Company Snapshot • Listed in 2011 on the Main Market of Bursa Malaysia. Highlights • Our goal is to grow our business by enhancing production from mature assets Shares Issued1 2,007,508,817 safely and profitably in regions of our
Slide 6: Sustainability Policy
Sustainability Policy As Hibiscus celebrates our 10th anniversary in the oil and gas, exploration and production industry, we look forward through a lens of sustainability framed by our Sustainability Policy, which has been aligned with the United Nations’ Sustainable Development Goals and their cal
Slide 7: Energy Transition Strategy
Energy Transition Strategy One of Our Goals: Aspire to be a Net Zero Emissions Producer by 2050 to Portfolio Resilience Decarbonising Green Investments • Increase natural gas in our • Develop decarbonizing plan • The Board has approved the portfolio of hydrocarbon & collaborate with key Group’s gree
Slide 8: Decarbonisation of New Assets to be Acquired
Decarbonisation of New Assets to be Acquired Optimisation & Fuel Switching Carbon Capture, Efficiency Utilisation & Storage Reduce energy consumption, Switching to renewable energy Achieving deep decarbonising optimise energy and production or lower carbon fuel for power through innovative use of ef
Slide 9: ESG Achievements
ESG Achievements Constituent of the FTSE4Good Bursa Malaysia Index effective 21 December 2020 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hibiscus Petroleum has been independently assessed according to the FTSE4Good criteria, and has satisfie
Slide 10: Current Reserves and Resources
Current Reserves and Resources • As at 1 July 2021, our reserves were as follows: 100 Million Barrels of Oil Equivalent 75 70.2 4.0 UK - Teal West 50 47.1 UK - Marigold & Sunflower 43.6 23.1 Australia - VIC/RL17 25 Malaysia - North Sabah 8.0 24.0 1.6 14.6 UK - Anasuria 0 2P Oil 2P Gas 2C Oil Reserve
Slide 11: Leadership Team
Leadership Team Experience with diversity BOARD OF DIRECTORS Skills and Experience from a Range of Industries and Sectors • Technical, commercial and corporate experience particularly in the oil and gas industry • Finance, accounting and investment banking/management • Audit and risk Zainul Rahim bi
Slide 12: Shareholder Base
Shareholder Base A public company with strong liquidity and a diversified shareholder base 7.13 Number of million Shares2 % of Shareholder Profile Average Daily Trading RM 0.840 (million) Shares Volume December 2021 Share Price1 178.66 8.9 Management Team 150.94 7.5 Principal Asset Management 2,007,
Slide 13: Current Portfolio of Assets
Current Portfolio of Assets Secure and Producing with Development Opportunities United Kingdom Anasuria Cluster Teal West ▪ Producing asset ▪ Development asset ▪ Joint-operator (except Cook field) ▪ Operator ▪ Partners: Ping Petroleum, Ithaca ▪ Partner: Zennor Energy Petroleum ▪ Net 2P Reserves: 24.
Slide 14: Portfolio of Assets – Malaysia
Part 2 Portfolio of Assets – Malaysia 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract 14 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 15: Overview of the North Sabah PSC
Overview of the North Sabah PSC Production Offshore Sabah, Malaysia Asset : 50% interest in the 2011 North Sabah EOR PSC: • St Joseph Producing Field • South Furious Producing Field • SF 30 Producing Field • Barton Producing Field • All associated equipment and assets related to the PSC including th
Slide 16: Sale of North Sabah Crude Oil
Sale of North Sabah Crude Oil Trades at a significant premium to the Brent crude oil benchmark • The Labuan Crude Oil Terminal (LCOT) is a storage and offloading facility for crude oil produced from our North Sabah asset, as well as from three neighbouring PSCs. • LCOT, which is operated by SEA Hibi
Slide 17: North Sabah Asset Acquisition and Transformation
North Sabah Asset Acquisition and Transformation 2011 - 2021 Production mb/d Operatorship • 10 Oil Producers and 1 Water 30 Injector wells successfully transfer 25 drilled in 2019/2020. 20 • First well drilled within 14 15 months of operatorship transfer. 10 5 • Approximately 8,000 bbl/day of increm
Slide 18: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Unit 2021 2021 2021 2020 Average uptime % 81 95 95 92 Average gross oil production bbl/day 14,355 17,281 17,796 17,700 Average net oil production bbl/day 5,311 6,394 6,585 6,549 Cargoes sold - 2 2 2 3 Total oil sold bbls 565,292 6
Slide 19: Awards Won
Awards Won Malaysia Upstream Awards 2020 Best Emerging Petroleum Wells Excellence Category – Drilling Excellence Category – Arrangement Contractor GOLD Award BRONZE Award 2021 PETRONAS Focused Recognition Award Successful 1st Integrated CTU Catenary Campaign – Awarded for successfully initiating the
Slide 20: Status of Repsol Acquisition Approvals
Status of Repsol Acquisition Approvals Approvals Received Date of Receipt Peninsula Hibiscus enters into Conditional Sale & Purchase Agreement with Repsol Exploracion, S.A. for the entire equity interest in Fortuna International 1 June 2021 Petroleum Corporation for a total cash consideration of USD
Slide 21: Portfolio of Assets – United Kingdom: The Anasuria Cluster
Part 3 Portfolio of Assets – United Kingdom The Anasuria Cluster 21 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 22: Overview of UK Portfolio
Overview of UK Portfolio Direct access to cashflows and located in an established legal jurisdiction 100% Atlantic Hibiscus Sdn Bhd 100% Hibiscus Petroleum Berhad Production asset Anasuria Hibiscus UK Limited Development asset Marigold Project 50% 50% Anasuria Cluster Anasuria Operating Company Limi
Slide 23: United Kingdom: The Anasuria Cluster
United Kingdom: The Anasuria Cluster Production in the UK Sector of the North Sea Asset Name Asset Type Hibiscus’ Stake Operator Guillemot A Producing Field 50% AOC Teal Producing Field 50% AOC Teal South Producing Field 50% AOC Cook Producing Field 19.3% Ithaca Anasuria FPSO FPSO 50% AOC Asset Acqu
Slide 24: Schematic of Field Layout and Infrastructure
Schematic of Field Layout and Infrastructure Anasuria FPSO Cook Field Teal Field Guillemot A Field Teal South Field Infrastructure The asset infrastructure is laid over a distance of approximately 25km from Cook Field in the north to Guillemot A Field in the south, and includes the Anasuria FPSO. 24
Slide 25: Sale of Anasuria Crude Oil
Sale of Anasuria Crude Oil Transparent marketing and reporting of our UK crude oil offtakes by BP Oil • Anasuria Hibiscus has entered into a long-term offtake and marketing agreement for the sale of crude oil with BP Oil International Limited (“BPOI”). • Whilst we produce oil daily, we sell our oil
Slide 26: Operating Performance Metrics
Operating Performance Metrics Jul – Sep Apr – Jun Jan – Mar Oct – Dec Units 2021 2021 2021 2020 Average uptime % 69 53 91 95 Average net oil production rate bbl/day 1,904 1,402 2,463 2,726 1 Average net gas export rate boe/day 301 240 354 383 Average net oil equivalent boe/day 2,206 1,642 2,816 3,10
Slide 27: Anasuria Cluster – Further Opportunities
Anasuria Cluster – Further Opportunities Teal West Tieback & Hub Strategy • Hibiscus has been investigating opportunities to extend the economic life, unlock value and maximise recovery from stranded oil discoveries around the Anasuria FPSO. • The License Agreements were executed for 70% interest in
Slide 28: Awards Won
Awards Won Safety Awards and Achievements Gold Award Awarded by the Royal Society for the Prevention of Accidents (ROSPA) for calendar year 2020 health and safety performance of the Anasuria FPSO facility – 22nd consecutive annual award Order of Distinction Awarded by ROSPA for 22 consecutive Gold A
Slide 29: Portfolio of Assets – United Kingdom: Marigold & Sunflower
Part 4 Portfolio of Assets – United Kingdom Marigold & Sunflower 29 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 30: United Kingdom: Marigold & Sunflower
United Kingdom: Marigold & Sunflower A Potential Game Changer Asset : 87.5% interest in: • Block 15/13a (Marigold) • Block 15/13b (Sunflower) Asset Type : Development Location : 250km northeast of Aberdeen, UK Water Depth : Approximately 140m Acquirer/Operator : Anasuria Hibiscus UK Limited (AHUK) P
Slide 31: Target Development Milestones
Target Development Milestones • AHUK has been pursuing the development of the Marigold and Sunflower fields in Licence P198 since early 2019. AHUK currently owns 87.5% of the licence and 2C resources of 43.6 MMbbls. • In January 2021, the OGA requested that AHUK seek to work with Ithaca Energy Limit
Slide 32: Marigold – Further Opportunities
Marigold – Further Opportunities Kildrummy Discovery • On 19 January 2021, AHUK executed the Licence Agreement for 100% interest in Block 15/17a, containing the Kildrummy discovery. The Block is located 8km from Marigold and is hoped that the Kildrummy discovery may become a potential tieback candid
Slide 33: Portfolio of Assets – Australia
Part 5 Portfolio of Assets – Australia Bass Strait Assets 33 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 34: Ownership Structure of our Australia Assets
Ownership Structure of our Australia Assets WA/527-P Hibiscus Petroleum Berhad 100% Oceania Hibiscus Sdn Bhd 11.68% 100% VIC/P57 VIC/RL17 T/49P VIC/P74 Carnarvon Hibiscus 3D Oil Limited Pty Ltd (CHPL) 100% 24.9% 75.1% 100% Retention Lease VIC/RL17 Licence WA/527-P Licence VIC/P57 ▪ West Seahorse Fie
Slide 35: Development & Exploration Opportunities
Development & Exploration Opportunities VIC/P57 Exploration Licence VIC/P74 Exploration Licence Acquisition Date: January 2013 Acquisition Date: October 2019 Water Depth/Acreage: c. 50m/340km2 Water Depth/Acreage: 45-75m/1,006km2 Participating Interest: 75.1%1 (Concession Operator) Participating Int
Slide 36: Financial Performance
Part 6 Financial Performance 36 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 37: Continuous Improvements & Key Performance Metrics
Continuous Improvements & Key Performance Metrics • The key indicator (KPI) that measures asset performance is the operating cost per barrel (OPEX/bbl). Focused on cost management OPEX bbl Production to increase with projects identified for 2020 • As we undertake high capital expenditure projects wh
Slide 38: EBITDA – Boosted by Two Producing Assets
EBITDA – Boosted by Two Producing Assets Acquisition of the North Sabah asset has 250,000 set a higher base for the Group’s EBITDA. 200,000 150,000 100,000 EBITDA, RM '000 50,000 0 -50,000 One-off provision for impairment of our -100,000 Australian assets amounting to RM185.3m -150,000 -200,000 -250
Slide 39: Financial Highlights by Operating Segment
Financial Highlights by Operating Segment 1Q FY2022 RM’000 North Sabah Anasuria Others1 Group Revenue 1Q FY2022 4Q FY2021 Cargoes sold 2 2 - 4 North 565,292 bbls x 608,006 bbls x Sabah USD75.00/bbl USD72.07/bbl Revenue 177,679 67,428 1,583 246,690 191,770 bbls x 254,945 bbls x Anasuria Gross Profit
Slide 40: Historical Operational Performance At Various Oil Price Levels
Historical Operational Performance At Various Oil Price Levels • The average unit production costs (OPEX per boe or OPEX per bbl) for both the Anasuria Cluster and the North Sabah PSC are well below the average realised oil price achieved in the respective quarters. • The careful management of costs
Slide 41: 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 2021 2021 2021 2020 2020 Total assets 2,880.4m 2,788.0m 2,722.3m 2,615.2m 2,492.3m Shareholders’ funds 1,529.5m 1,473.9m 1,418.4m 1,241.0m 1,196.8m Cash and bank balan
Slide 42: Key Messages
Part 7 Key Messages 42 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 43: Key Messages
Key Messages ▪ We sold 757,062 barrels of oil in Q1 FY2022. Target for FY2022 is to deliver approximately 2.5-2.7 million barrels of oil from North Sabah and Anasuria. In the event that the Repsol Acquisition is completed by the end of CY2021, we expect to add a further estimated 3 million boe of oi
Slide 44: Appendix
Appendix • Views from Analysts • Reserves and Resources Classification • Fiscal Systems – UK & Malaysia • Profiles: Board of Directors and Key Management 44 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 45: Views from Analysts
Views from Analysts 45 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 46: Reserves and Resources Classification
Reserves and Resources Classification Increasing Commerciality Low High Low Undiscovered - Discovered - Discovered - Prospective Contingent Reserves Resources Resources Range of Certainty High Estimate 3C 3P Best Estimate 2C 2P Low Estimate 1C 1P High Source: Society of Petroleum Engineers and World
Slide 47: Fiscal Systems – UK & Malaysia
Fiscal Systems – UK & Malaysia UK - Concession System Malaysia - Production Sharing Contract (PSC) (IOC is licence holder) (NOC is licence holder) Project Oil Company Project Oil Company Govt./Petronas Revenue + Revenue Revenue + Cost Recovery + Royalty - Corporate Income + Profit Oil share of + Pro
Slide 48: 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 Cenergi SEA Berhad, Standard Chartered Saadiq Berhad and the Malaysian Dutch Business Council. • Previously Board member of UKM Holding
Slide 49: 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 27 years of accounting and finance experience in various industries, namely oil and gas, manufacturing, technology, services, risk con
Slide 50: Profiles: Key Management
Profiles: Key Management Joyce Vasudevan, Head, Corporate Finance • Joined Hibiscus in January 2011. • Over 30 years of experience in audit, corporate finance, finance, business planning, operations planning, fund raising, investor relations, media relations, strategy development. • Previously worke
Slide 51: Profiles: Key Management
Profiles: Key Management Syarifah Aliza Syed Azauddin, VP Corporate Governance • Joined Hibiscus in September 2011; previously Senior General Manager, Corporate Finance, Secretarial and Regulatory Compliance prior to commencing current role. • Over 24 years experience in various areas of corporate f
Slide 52: Contact Investor Relations Team
Contact For more information please contact: Investor Relations Team faq@hibiscuspetroleum.com 52 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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