Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Q1 FY2022 Earnings Presentation
29 slides from Hibiscus Petroleum Bhd's earnings presentation, Nov 11, 2021
Slide 1: Quarterly Results
Quarterly Results Highlights of the First Quarter Results for the Quarter Ended 30 September 2021 Briefing for Analysts and Fund Managers 11 November 2021
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 Balances • Global Macro Aspirations Towards Net Zero • Macro Realities • Brent Oil Price Outlook • Energy Transition Strategy • Proposed Acquisition of Repsol Assets • Repsol Acquisition Approvals Part 2: Group Financials Snapshot • 1Q FY20
Slide 4: Oil Market and Company Outlook
Part 1 Oil Market and Company Outlook • Oil Market Balances • Global Macro Aspirations Towards Net Zero • Macro Realities • Brent Oil Price Outlook • Energy Transition Strategy • Proposed Acquisition of Repsol Assets • Repsol Acquisition Approvals 4 Hibiscus Petroleum Berhad Registration Number: 200
Slide 5: Oil Market Balances
Oil Market Balances Source: Rystad Energy, as of 25 October 2021 5 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 6: Global Macro Aspirations Towards Net Zero
Global Macro Aspirations Towards Net Zero • The Net-Zero by 2050 Scenario (“NZE”) is an aggressive simulation by the IEA • Many energy economists believe that outlining necessary steps across various sectors by multiple actors to achieve a the NZE is an extremely optimistic global net-zero emissions
Slide 7: Macro Realities
Macro Realities The increasing social and regulatory pressures Large fossil fuel supply gap, leading to: directed at fossil fuels from environmentalists, investors, lenders, politicians and regulators, are • Increased volatility on the oil market with spikes in prices of oil to causing: potentially
Slide 8: Brent Oil Price Outlook
Brent Oil Price Outlook USD per barrel 90 Average Brent Futures (2018) Average Brent Futures (2020) Average Brent Futures (2021) Average Brent Base Case (Rystad - Oct 2021) 85 Average Brent Futures (Analyst's Consensus - Oct 2021) Average Brent Futures (28 Oct 2021) 79 80 75 73 71 70 70 69 67 69 66
Slide 9: Our Energy Transition Strategy
Our 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
Slide 10: Proposed Acquisition of Repsol Assets
Proposed Acquisition of Repsol Assets On 1 June 2021, Hibiscus signed a SPA to acquire 100% of Fortuna International Petroleum Corporation (“FIPC”) from Repsol Exploración, S.A. The FIPC Group holds participating interests in producing oil & gas fields in Malaysia and Vietnam. Repsol, S.A. (Spain) A
Slide 11: Repsol Acquisition Approvals
Repsol Acquisition Approvals Item Status Approval from Bank Negara Malaysia ✔ Obtained on 21 June 2021 Approval from the Barbados Exchange Control Authority for the sale ✔ of FIPC Shares to Peninsula Hibiscus Obtained by Repsol on 29 June 2021 Receipt by Repsol of pre-emption rights waiver by each o
Slide 12: 1Q FY2022 Group Financials Snapshot
Part 2 1Q FY2021 Group Financials Snapshot • 1Q FY2021 Group Financials (vs Previous Quarter) • Highlights from the Group’s Balance Sheet 12 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 13: 1Q FY2022 Group Financials (vs. Previous Quarter)
1Q FY2022 Group Financials (vs. Previous Quarter) 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
Slide 14: 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 15: Malaysia – 2011 North Sabah Enhanced Oil Recovery PSC
Malaysia – Part 3 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract • Operating Performance Metrics • Key Factors Affecting Quarterly Results • Consistent EBITDA Margins Despite Varying Oil Prices 15 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 16: 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 17: Key Factors Affecting North Sabah's 1Q FY2022 Financial Results
Key Factors Affecting North Sabah’s 1Q FY2022 Financial Results • Crude oil offtakes in 1Q FY2022: 565,292 bbls @ USD75.00/bbl average realised price. Revenue was consistent with 4Q FY2021 Financials RM’000 despite lower volume sold (43k bbls lower (7%)) due to higher Revenue 177,679 average realise
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 FY2020 exclude the reversal of unrecovered recoverable costs of RM78.2 million. 18 Hib
Slide 19: United Kingdom – The Anasuria Cluster
Part 4 United Kingdom – The Anasuria Cluster • Operating Performance Metrics • Further Opportunities • Awards Won • 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 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 21: 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 22: 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 23: Key Factors Affecting Anasuria's 1Q FY2022 Financial Results
Key Factors Affecting Anasuria’s 1Q FY2022 Financial Results Financials RM’000 • Crude oil offtakes in 1Q FY2022: 191,770 bbls @ USD76.31/bbl average Revenue 67,428 realised price. Revenue was slightly lower in 1Q FY2022 by RM2.9m Gross Profit 38,951 due to lower volume sold (63k lower (25%)) but wa
Slide 24: Strong EBITDA Margins Despite Varying Oil Prices
Strong EBITDA Margins Despite Varying Oil Prices Anasuria’s EBITDA margin in 2Q FY2021 was adversely affected by period-end retranslation of GBP-denominated balances which resulted in unrealised foreign exchange losses due to the appreciation of GBP against USD and one-off provisions recognised. 24
Slide 25: United Kingdom – Marigold & Sunflower
Part 5 United Kingdom – Marigold & Sunflower • Target Development Milestones 25 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 26: 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 27: Key Messages
Part 6 Key Messages 27 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 28: 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 29: Thank You
Thank You For more information please contact: Investor Relations Team faq@hibiscuspetroleum.com 29 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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