Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Day (March 2023)
30 slides from Hibiscus Petroleum Bhd's investor day presentation, March 2023
Slide 1: Execute–Enhance–Excel Driving Growth
HIBISCUS PETROLEUM INVESTOR DAY 2023 EXECUTE–ENHANCE–EXCEL DRIVING GROWTH
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: The Hibiscus Value Proposition
HIBISCUS PETROLEUM INVESTOR DAY 2023 THE HIBISCUS VALUE PROPOSITION EXECUTE–ENHANCE–EXCEL DRIVING GROWTH
Slide 4: Past. Present. Future.
Past. Present. Future. FURTHER ACHIEVING our GROWTH EXPANDING through full potential AHEAD high impact 2023 and beyond acquisitions and - Progressing from established operational excellence solid asset, operational and financial foundations 2016 to 2022 BUILDING our - Shifted focus to acquisitions o
Slide 5: Focusing On Value Accretive Acquisitions
Focusing On Value Accretive Acquisitions Hibiscus’ process creates growth and value Screen M&A targets in core countries Screening criteria – production, operatorship, country risk, fiscal terms, pricing, upside opportunities Secure field extensions where possible v Smart deals at attractive prices
Slide 6: Delivering Strong IRRs and Payback Periods
Delivering Strong IRRs and Payback Periods 2016 2018 2022 Anasuria Cluster North Sabah Peninsula Hibiscus Purchase USD52.5m USD25.0m USD212.5m Consideration = USD2.6/bbl = USD1.7/bbl = USD6.2/boe Internal Rate of Return (IRR) 689% 298% 63% Payback Period < 1 year < 1 year 3 years Incremental Net Pro
Slide 7: Enhancing Asset Performance
Enhancing Asset Performance Experienced in Improving Oil Recovery North Sabah Anasuria Cluster Previous Operator Hibiscus Previous Operator Hibiscus 25 86% 10 89% 89% 90% 73% 9 65% Gross Production (kbbl/d) 20 91% 91% Gross Production (kbbl/d) 90% 72% 80% 91% 8 92% 93% 92% 49% 44% 92% 89% 7 72% 15 6
Slide 8: Growing Production & 2P Reserves
Growing Production & 2P Reserves 25 72.3 80 70 Net Production (kboe/day) 20 60 2P Reserves (MMboe) 50.7 48.7 19.7 46.0 46.1 50 15 40 10 26.7 25.7 30 8.5 8.4 9.1 9.1 20 5 10 4.0 3.5 0 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Net Production 2P Reserves In multiple jurisdictions North
Slide 9: Strengthening Financials
Strengthening Financials Financial Year 30 June (“FY”) Jan – Dec (RM’m) 2015 2016 2017 2018 2019 2020 2021 2022 2022 Normalised (LBITDA)/EBITDA (61) (133) 163 134 545 335 381 812 1,200 Normalised (LAT)/PAT (68) (176) 113 3 226 72 104 383 498 As at 30 June As at 31 Dec 2015 2016 2017 2018 2019 2020 2
Slide 10: Improving Shareholder Returns 1
Improving Shareholder Returns ….. 1 Outperforming Oil Price Upside Potential vs Peers Hibiscus Share Price vs Brent Oil Price Market 900 since 2016 Company Country Cap EV EV/2P P/E (USDbn) 2022 (USDbn) 800 Company A Australia 0.8 0.7 12.3x 7.2x 700 Company B Australia 0.3 0.2 5.2x n.a. 600 Company C
Slide 11: Improving Shareholder Returns 2
Improving Shareholder Returns ….. 2 Dividend Payout Share Buy-Back Dividend Dividend (Sen) Yield Enables Hibiscus to purchase shares particularly when 3.00 2.30% they are significantly undervalued 2.50 2.20% 2.10% 2.00 Maiden 2.00% dividend Enhances investors’ Increases EPS (all factors 1.50 1.90% c
Slide 12: Focusing on ESG
Focusing on ESG Environment Energy Transition Strategy to Net Zero Emissions Producer by 2050 Portfolio Resilience Decarbonisation Low Carbon Investment Importance of gas as a transitional fuel: it can Continuous efforts to reduce our emissions through Exploring different opportunities to diversify
Slide 13: Hibiscus – Our Growth Story
Hibiscus – Our Growth Story Revenue USD1,399m Total Purchase Consideration for Anasuria, North Normalised EBITDA USD 722m Sabah and Peninsula Hibiscus Normalised PAT USD 294m Assets : USD290m Group Cash Flows USD 252m Total equity raised since IPO : Market capitalisation as at 10.03.2023 : RM970m RM
Slide 14: Hibiscus – Our Growth Story
Hibiscus – Our Growth Story Peninsula North Anasuria: Hibiscus: Sabah: March 2016 January 2022 March 2018 72 MM bbls ↑ 10.3x 69 MM boe ↑ 2.6x 27 MM boe 7 MM bbls 19 kboe ↑ 4.8x Daily production 4 kboe FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 LTM 31 Dec 2022 RM2,385m ↑ 3.2x RM1,200m ↑ 7.4x RM
Slide 15: Roadmap for Continued Growth
HIBISCUS PETROLEUM INVESTOR DAY 2023 ROADMAP FOR CONTINUED GROWTH EXECUTE–ENHANCE–EXCEL DRIVING GROWTH
Slide 16: Disciplined Growth Strategy with a Clear Plan Forward
Disciplined Growth Strategy with a Clear Plan Forward COMPANY OBJECTIVES Our aim is to build a responsible energy Our focus is to enhance shareholder value Expand green operations and capabilities – 01 company, using our resources, founded on 02 whilst always being conscious of the 03 our aspiration
Slide 17: Peninsula Hibiscus Expected to Continue as Largest Production Contributor
Peninsula Hibiscus Expected to Continue as Largest Production Contributor of the Group Estimated Net Oil & Gas Production CY2023- Key value enhancing activities of Peninsula Hibiscus: 2026 18 1. Discussions on the extension of the PM3 CAA licence have been 16 15 15 initiated. 14 13 2. 6 development
Slide 18: SEA Hibiscus Expected to Remain a Stable Contributor
SEA Hibiscus Expected to Remain a Stable Contributor to the Group with Strong Growth Prospects Estimated Net Oil Production CY2023-2026 Key value enhancing activities of SEA Hibiscus: 7 1. SEA Hibiscus is to execute the SF30 Waterflood Phase 2 Project 6 6 at the North Sabah PSC over 2023 and 2024. 6
Slide 19: Anasuria Hibiscus Upcoming Development Opportunity
Anasuria Hibiscus Expected to Provide Additional Value through Upcoming Development Opportunity Estimated Net Oil & Gas Production CY2023- Key value enhancing activities of Anasuria Hibiscus: 2026 7 7 7 1. Development of Teal West with expected First Oil in October 0.9 2024. 6 1.3 0.4 • Involves dri
Slide 20: Hibiscus Aims to Achieve its 2026 Mission
Hibiscus Aims to Achieve its 2026 Mission through Organic and Inorganic Growth Estimated Net Oil & Gas Production CY2023-2026 50 The gap of ~10,000 boe/day to achieve the 2026 45 2026 Mission: Mission production levels will be met through one 35,000-50,000 or a few of the following: 40 boe/day 35 Ex
Slide 21: Energy Transition Roadmap of Hibiscus
Energy Transition Roadmap of Hibiscus Portfolio Resilience Decarbonisation Low Carbon Investment To INCREASE NATURAL GAS reserves in our To DECARBONISE our own assets with To invest in HIGH IMPACT NICHE portfolio of hydrocarbon assets primary focus on Peninsula Hibiscus assets OPPORTUNITIES that wil
Slide 22: Transition Story of Peninsula Hibiscus' Acquisition
HIBISCUS PETROLEUM INVESTOR DAY 2023 TRANSITION STORY OF PENINSULA HIBISCUS’ ACQUISITION EXECUTE–ENHANCE–EXCEL DRIVING GROWTH
Slide 23: What We Acquired
What We Acquired On 24 January 2022, Hibiscus completed the acquisition of the entire issued share capital of Fortuna International Petroleum Corporation from Repsol Exploración, S.A which holds participating interests in producing oil & gas fields in Malaysia and Vietnam. Peninsula Hibiscus Sdn Bhd
Slide 24: Peninsula Hibiscus' Acquisition Overview
Peninsula Hibiscus’ Acquisition Overview: Core Markets, Attractive Entry Price, Encouraging Upside Potential Transaction effective January 2021; Hibiscus on-seat from January 2022 Key strategic aspects of the acquisition: 1 2 3 Brought "operated" gas into the Hibiscus PM3 CAA’s ability to handle hig
Slide 25: Acquisition Economics and Potential Upside
Acquisition Economics and Potential Upside Quick Payback in 3 years, 100% of initial investment expected to be recovered by end 2024 Agreed consideration As at effective date of January 2021 -USD212.5m Adjustments as at closing date As at closing date of January 2022 +USD73.8m Net purchase considera
Slide 26: Smooth Transition via an Experienced Hibiscus Leadership
Smooth Transition via an Experienced Hibiscus Leadership Dr Pascal Hos Chief Executive Officer Suresh Vasudevan Devarajan Indran Michael Anthony Fox Head, Planning, Head, Head, SCM, Commercial Technical Services Operated Assets • Production & Maintenance • Supply Chain Management • Reservoir Surveil
Slide 27: Execute Focused Initiatives to Stabilise the Business
Execute Focused Initiatives to Stabilise the Business and Position for Enhanced Profitability Enhanced operational discipline and business focus • Cleared >90% maintenance/inspection backlog from • Successfully resolved multiple tax 2020/2021 misalignments with Malaysian tax authorities to • 2022 fa
Slide 28: Operational Excellence Underpins Awards & Recognitions
Operational Excellence Underpins Awards & Recognitions Four Years Lost Time 2022 PETRONAS Focused Recognition Incident Free Awarded in March 2022 for increasing gas supply from PM3 CAA to support higher Achieved by Bunga Orkid-A gas demand in February 2022. Platform on 13 April 2022. 2023 PETRONAS F
Slide 29: Looking Ahead … Multiple Avenues to Increase the Value
Looking Ahead … Multiple Avenues to Increase the Value of the Acquired Assets 1 Integration of Malaysian Operations 2 Extract maximum value from existing fields 3 Initiated discussions with regulators for extension of PM3 CAA licence 4 Explore CO2 storage in PM3 CAA 5 Leverage high CO2 gas handling
Slide 30: Execute – Enhance – Excel Driving Growth
EXECUTE – ENHANCE – EXCEL DRIVING GROWTH
Hibiscus Petroleum Berhad — Investor Day (March 2023) on 6ix