Hibiscus Petroleum Bhd.MYX: HIBISCS

Record High Quarterly Net Production of 28,138 boe/day;Second Interim Single-Tier Dividend for FY2025 of 3.0 Sen Per Share

Feb 25, 2025 at 6:49 AM UTC · Issued by Hibiscus Petroleum Bhd.

Corporate and Business Update

(Issued by Hibiscus Petroleum Berhad ("Hibiscus Petroleum" or the "Group") in conjunction with the

Quarterly Report for the Financial Quarter Ended 31 December 2024)

Kuala Lumpur, 25 February 2025 - 12.30pm

Headlines

Record High Quarterly Net Production of 28,138 boe/day
Second Interim Single-Tier Dividend for FY2025 of 3.0 Sen Per Share
Achieved 1H FY2025 EBITDA of RM489.7 Million and PAT of RM158.9 Million
Share Buy-Back: Total of 51.2 Million Shares Purchased for Circa RM107.4 Million
On Track to Achieve 17% Increase in FY2025 Offtake Volumes Over FY2024

Highlights

Following completion of the acquisition of TotalEnergies EP (Brunei) B.V., since renamed to Hibiscus EP (Brunei) B.V. ("Hibiscus Brunei"), the Group produced an average 28,138 boe/day of oil, condensate and gas net to the Group for the financial quarter ended 31 December 2024
("Current Quarter").
Achieved "normalised" earnings before interest, taxes, depreciation and amortisation ("EBITDA") of RM357.4 million and a "normalised" profit after taxation ("PAT") of RM108.1 million for the Current Quarter, on the back of RM653.2 million revenue and an average realised oil and condensate price of USD77.42 per barrel ("bbl").
Sold 2.6 million bbls of oil equivalent ("MMboe") in the Current Quarter comprising 1.4 million bbls ("MMbbl") of oil and condensate and 1.2 MMboe of gas. On track to sell approximately 9.1 MMboe of oil, condensate and gas in the financial year ending 30 June 2025 ("FY2025"), 17% more than achieved in the financial year ended 30 June 2024 ("FY2024").
Declared a second interim single-tier dividend of 3.0 sen per ordinary share for FY2025 on 25 February 2025. As previously disclosed, subject to oil prices remaining at or above USD70/bbl, the Group targets to declare a minimum total dividend of 8.0 sen per ordinary share. Should oil prices be above USD80/bbl, the total dividend rises to 10.0 sen per ordinary share.
Share Buy-back: Purchased a total of 51.2 million shares at an average price of RM2.10 per share up to 24 February 2025. Of these shares, 36.6 million were cancelled in November 2024, with the remainder currently being retained as treasury shares.

This Corporate and Business Update ("Update") covers business activities over the Current Quarter, key developments as of the release of this Update and provides commentary on the operational and financial performance of the Group.

Operational Updates

Awards

We are pleased to highlight the following recognitions and achievements for safety and production operations in Malaysia:

In December 2024, we received three awards at PETRONAS's Offshore Self-Regulation (OSR) Conference 2024 for Overall OSR Excellence, Zero Overdue Compliance and Assurance Excellence.
In November 2024, our Wells Intervention and Wells Integrity received a Focused Recognition from PETRONAS MPM Wells Management for achieving 14 years with Zero Lost Time Injury ("LTI").

Operational Performance in the Current Quarter

Figure 1 below summarises the operational performance of the Group for the Current Quarter.

								North						Block B			Anasuria		Block	Total or
		Unit			PM3 CAA					Kinabalu							46 Cai
						Sabah					MLJ			Cluster				Average
																	Nuoc

Average uptime	%		97		92		85		90		78		97		-
Average gross oil & condensate		bbl/day	19,175		13,193		6,003		2,695		5,026		280		46,372
production

Average net oil & condensate		bbl/day	3,413		4,882		2,443		1,011		1,686		120		13,555
production

Average gross gas export rate @		boe/day	36,345		-		-		15,953		686		-		52,984
Average net gas export rate @		boe/day	8,468		-		-		5,982		133		-		14,583
Average net oil, condensate		boe/day	11,881		4,882		2,443		6,993		1,819		120		28,138
and gas production rate

Total oil & condensate sold		bbl	620,071		306,085		304,528		0		133,893		-		1,364,577
Total gas sold		MMscf	4,619		-		-		2,774		73		-		7,466
	boe		769,836		-		-			462,307		12,236		-		1,244,379


Total oil, condensate & gas		boe		1,389,907		306,085		304,528			462,307		146,129		0		2,608,956
sold

Average realised oil &		USD/bbl		75.34		77.80		82.56			-		74.50		-		77.42
condensate price

Average gas price		USD/Mscf		5.46		-		-			4.65		12.55		-		-
Average realised oil,		USD/boe		51.76		77.80		82.56			27.90		74.57		-		55.46
condensate and gas price

Average production
operational expenditure		USD/boe		13.30		20.90		27.26			7.90		30.84		25.77		-
("OPEX") per boe1
Average net OPEX per boe2		USD/boe		22.35		29.52		41.10			7.90		30.84		42.76		-

Figure 1: Summary of operational performance for the Current Quarter.

Notes to Figure 1:

This is computed based on gross production OPEX divided by gross oil, condensate and gas production. This is computed as follows:

+ ( )

, ( )

Conversion rate of 6,000 standard cubic feet ("scf") per boe. boe - bbl of oil equivalent.
Mscf - thousand scf. MMscf - million scf.
Figures are subject to rounding.

FY2025 Oil and Condensate Offtake Schedule and Gas Sales Outlook

Figure 2 below illustrates the Group's FY2024 oil and condensate offtakes and gas sales from our producing assets, together with the latest estimates for the financial quarter ending 31 March 2025 ("Q3 FY2025") and the financial quarter ending 30 June 2025 ("Q4 FY2025"). In summary, we estimate to sell a total of 2.1 MMboe and 2.8 MMboe of oil, condensate and gas in Q3 FY2025 and Q4 FY2025 respectively, net to the Group. For FY2025, we estimate total sales volume to be approximately 9.1 MMboe.

								Total net oil, condensate and gas sales volume (boe)

				Actual -		Latest Estimate - Q3 FY2025		Latest Estimate - Q4 FY2025		Latest
				Q1 & Q2															Estimate
					Jan		Feb		Mar		Total		Apr		May		Jun	Total
				FY2025										- FY2025
					20251		2025		2025			2025		2025		2025

PM3 CAA	Oil & Cond.	920,583	-	-	-	-	300,000	-	-	300,000	1,220,583
		Gas	1,412,427	220,230	190,000	231,000	641,230	258,000	243,000	250,000	751,000	2,804,657
Kinabalu	Oil	304,528	306,514	-	-	306,514	300,000	-	-	300,000	911,042
Block B	Condensate	-	-	-	-	-			-	112,500	112,500	112,500
	MLJ	Gas	462,307	187,723	167,000	182,000	536,723	162,000	171,000	198,000	531,000	1,530,030
Block 46	Oil	-	117,889	-	-	117,889	-	-	-	-	117,889
North	Oil	919,218	-	300,000	-	300,000	300,000	-	300,000	600,000	1,819,218
	Sabah

Anasuria	Oil	236,880	-	-	169,000	169,000	-	-	167,000	167,000	572,880
	Cluster	Gas	21,069	4,856	6,000	7,000	17,856	6,000	7,000	6,000	19,000	57,925
Total		4,277,011	837,212	663,000	589,000	2,089,212	1,326,000	421,000	1,033,500	2,780,500	9,146,724
		Oil & Cond.	2,381,209	424,403	300,000	169,000	893,403	900,000	-	579,500	1,479,500	4,754,112
		Gas	1,895,802	412,809	363,000	420,000	1,195,809	426,000	421,000	454,000	1,301,000		4,392,612

Figure 2: The Group's net offtake schedule for Q3 FY2025 & Q4 FY2025.

Note to Figure 2:

1 Actual.

Production

(Note: Block 46 Cai Nuoc has not been included in this section as its production is not material.)

Malaysia South China Sea

North Sabah PSC: Production Operations

The table below provides a summary of key operational statistics for the North Sabah asset (50% participating interest held by SEA Hibiscus), for the Current Quarter and the prior three financial quarters:

		October to	July to	April to	January to
	Unit	December	September	June	March
		20241	2024	2024	2024
Average uptime	%	92	88	86	96

Average gross oil production	bbl/day	13,193	11,733	12,826	13,688
Average net oil production	bbl/day	4,882	4,341	4,745	5,065

Total oil sold	bbl	306,085	613,133	614,570	299,584
Average realised oil price	USD/bbl	77.80	83.87	94.63	93.54
Average production OPEX per bbl2	USD/bbl	20.90	27.35	25.66	15.80
Average net OPEX per bbl3	USD/bbl	29.52	38.93	35.80	20.83

Figure 3: Operational performance for the North Sabah asset.

Notes to Figure 3:

Figures for the period October 2024 to December 2024 are provisional and may change subject to the PSC Statement audit and
PETRONAS's review.
This is computed based on gross production OPEX divided by gross oil production.
This is computed as follows:

+ ( )

, ( )

Average gross oil production is higher compared to the financial quarter ended 30 September 2024
("Preceding Quarter") due to better performance and higher uptime from St Joseph field, and incremental production from SF30 new infill wells (first oil achieved on 31 October 2024).
One offtake of 306,085 bbls of oil in the Current Quarter; expecting to sell approximately 300kbbls in Q3 FY2025.
Average OPEX per bbl is lower in the Current Quarter mainly due to higher production and lower production costs.
Capital expenditure for the current quarter was RM112 million (net), primarily for the SF30 Water Flood Phase 2 development project, which includes drilling of 5 oil wells and 6 water injectors.

Kinabalu Oil PSC: Production Operations

The table below provides a summary of key operational statistics for the Kinabalu asset (60% participating interest held by Hibiscus Oil & Gas Malaysia Limited ("HML"), for the Current Quarter and the prior three financial quarters:

		October to	July to	April to	January to
	Unit	December	September	June	March
		20241	2024	2024	2024
Average uptime	%	85	72	84	90
Average gross oil production	bbl/day	6,003	6,202	8,035	8,770
Average net oil production	bbl/day	2,443	2,371	2,904	3,432

Total oil sold	bbl	304,528	-	349,457	308,799
Average realised oil price	USD/bbl	82.56	-	84.09	93.13

Average production OPEX per bbl2	USD/bbl	27.26	19.70	22.67	9.74
Average net OPEX per bbl3	USD/bbl	41.10	32.42	39.07	15.36

Figure 4: Operational performance for the Kinabalu asset.

Notes to Figure 4:

Figures for the period October 2024 to December 2024 are provisional and may change subject to the PSC Statement audit and
PETRONAS's review.
This is computed based on gross production OPEX divided by gross oil production.
This is computed as follows:

+ ( )

, ( )

Lower gross production in the Current Quarter due to extended shut-in period for KN-114 and KN-
116 wells to facilitate the installation of Electrical Submersible Pump ("ESP") activities and lower production gains after the ESPs were commissioned.
One offtake of 304,528 bbls of oil in the Current Quarter; sold 306,514 bbls in Q3 FY2025.
Average OPEX per barrel for Current Quarter is higher mainly due to higher production cost and lower production.
Capital expenditure: RM57 million (net) during the Current Quarter predominantly for ESP Pilot well workover activities and other minor capex projects.

PM327 PSC: Exploration Operations

The Rosebay-1 exploration well is the second commitment well drilled in the PM327 PSC by the operator, Petronas Carigali Sdn Bhd. The well was drilled on 3 December 2024 and reached its final depth on 28 December 2024. The operator has classified the Rosebay-1 well as a technical success and encountered two minor gas sands in the H-45 and I-45 reservoirs. The results of this well have provided a better understanding of the subsurface prospectivity of the area and the learnings will be applied to enhance the chance of success for future exploration wells in the PM327 block. Whilst the data obtained from this well may contribute to future discoveries and developments in the PM327 area, the Group wrote off its share of the exploration costs incurred of RM17.5 million.

Commercial Arrangement Area

PM3 CAA PSC: Production Operations

The table below provides a summary of key operational metrics for the PM3 CAA asset, (35% participating interest held by HML and Hibiscus Oil & Gas Malaysia (PM3) Limited) for the Current Quarter and the prior three financial quarters:

				October to	July to	April to	January to
			Unit	December	September	June	March
				20241	2024	2024	2024
Average uptime	%	97	86	91	94
Average gross oil & condensate production		bbl/day	19,175	16,262	18,782	19,471
Average net oil & condensate production		bbl/day	3,413	3,448	3,607	2,888
Average gross gas export rate		boe/day	36,345	27,127	33,072	33,054
Average net gas export rate		boe/day	8,468	6,925	7,520	7,140
Average net oil, condensate & gas		boe/day	11,881	10,372	11,127	10,029
	production rate


Total oil & condensate sold		bbl	620,071	300,512	302,571	314,237
Total gas sold		MMscf	4,619	3,856	3,772	4,136
Average realised oil & condensate price		USD/bbl	75.34	85.54	88.96	89.30
Average realised gas price		USD/Mscf	5.46	5.70	6.22	5.41
Average production OPEX per boe2		USD/boe	13.30	19.95	16.36	9.55
Average net OPEX per boe3		USD/boe	22.35	29.64	27.08	17.86

Figure 5: Operational performance for the PM3 CAA asset.

Notes to Figure 5:

Figures for the period October 2024 to December 2024 are provisional and may change subject to the PSC Statement audit and
PETRONAS's review.
This is computed based on gross production OPEX divided by gross oil, condensate, and gas production.
This is computed as follows:

+ ( )

, ( )

Average gross oil and condensate production is higher in the Current Quarter vs Preceding Quarter due to sustained performance from H4 reservoirs and better platform uptime. In addition, the annual major maintenance campaign was conducted in mid-August of the Preceding Quarter (during which production facilities were shut down).
Average gross gas export in the Current Quarter increased by 34% due to sustained gas demand from buyers and strong uptime performance.
Two offtakes were achieved in the Current Quarter; no offtake expected in Q3 FY2025.
Average OPEX per boe is lower vs Preceding Quarter due to higher production and lower production cost.

Capital expenditure: RM15 million (net) in the Current Quarter for costs related to turbo compressor engine change out, power turbine replacement and other minor capex projects.

Brunei Darussalam

Block B Maharajalela Jamalulalam ("MLJ")

The table below provides a summary of the key operational metrics for the Brunei Block B MLJ asset (37.5% participating interest held by Hibiscus Brunei) for the period between 15 October 2024 and 31 December 2024, following the completion of acquisition of the equity interest:

		15 October to
	Unit	December
		2024
Average uptime	%	90
Average gross oil & condensate production	bbl/day	2,695
Average net oil & condensate production	bbl/day	1,011
Average gross gas production rate	boe/day	15,953
Average net gas production rate	boe/day	5,982
Average net oil, condensate & gas production rate	boe/day	6,993
Total oil & condensate sold	bbl	-

Total gas sold	MMscf	2,774
Average realised oil & condensate price	USD/bbl	-

Average realised gas price	USD/Mscf	4.65
Average production OPEX per boe1	USD/boe	7.9

Figure 6: Operational performance for the Block B MLJ asset.

Notes to Figure 6:

1 This is computed based on gross production OPEX divided by gross oil, condensate, and gas production.

Production:

Average condensate and gas production rate for the quarter was lower than forecast, predominantly attributed to the stoppage of export from our Onshore Processing Plant (OPP) for approximately 7.5 days between 19 and 27 November 2024 due to the unplanned shutdown of the BLNG Plant at Lumut. Our facilities immediately resumed export as soon as BLNG was ready to receive Block B's gas.
Production enhancement activities, via well interventions, took place in the Current Quarter, with 2 wells (out of 5 planned in total) executed on cost and per schedule.

Low Pressure Compression (LPC) Project:

Achieved the milestone of 500k manhours without LTI.
Overall project progress of 65%.
Factory Acceptance Test of the compressor successfully completed in December and it is estimated to be delivered to the project site by end March 2025.
Project is still forecasted to be delivered within schedule and costs.

United Kingdom ("UK")

Anasuria Cluster: Production Operations

The table below shows the operational performance achieved by the asset, based on Anasuria Hibiscus UK Limited ("Anasuria Hibiscus UK")'s participating interest, for the Current Quarter and for the prior three financial quarters:

				October to		July to		April to		January to
			Unit	December		September		June		March
				2024		2024		2024		2024
Average uptime	%	78		46		78		93
Average net oil production rate		bbl/day	1,686		952		1,741		2,054
Average net gas export rate @		boe/day	133		95		172		261
Average net oil equivalent		boe/day	1,819		1,048		1,912		2,315
	production rate


Total oil sold		bbl	133,893		102,987		188,643		188,654
Total gas exported (sold)		MMscf	73		53		93		142
Average realised oil price		USD/bbl	74.50		75.85		84.28		87.68
Average gas price		USD/Mscf	12.38∞/19.98#	9.78∞/10.21#	8.59∞/11.33#	8.61∞/9.59#
Average production OPEX per boe1		USD/boe	30.84		85.07		32.39		25.59

Figure 7: Operational performance for the Anasuria asset.

Notes to Figure 7:

1 This is computed based on gross production OPEX divided by gross oil and gas production. @ Conversion rate of 6,000 scf per boe.

∞ For Cook field.

# For Guillemot A, Teal and Teal South fields. Figures are subject to rounding.

Production and OPEX/boe in the current quarter were better than the Preceding Quarter mainly due to the gas system returning to normal operation on 25 October 2024.
One offtake of 133,893 bbls of oil in the Current Quarter. Expected to sell approximately 169 kbbls of oil and 18 kboe of gas in Q3 FY2025.
Capital expenditure: RM4 million, primarily for the upgrade and replacement of facilities on the Anasuria FPSO.

UK - Marigold, Sunflower and Surrounding Fields

In mid-CY2024, Anasuria Hibiscus UK applied to extend the P198 Marigold and Sunflower licence. On 10 December 2024, NSTA accepted the application to extend the P198 Marigold and Sunflower licence until 30 June 2028 (with a 2-year extended long-stop until 30 June 2030) on the condition that the Related Work Element (RWE) of a Field Development Plan ("FDP") is submitted by 30 June 2026. The "Deed of Variation" extending the P198 licence was signed off on 20 December 2024 by all parties. Work is ongoing on a new Concept Select Report, which includes developing the Greater Marigold Development Area (GMAD), and this will be followed by the FDP.

Financial Performance

The Group reported an EBITDA of RM339.9 million and 52% EBITDA margin over revenue for the Current Quarter. The PAT amounted to RM83.3 million which resulted in a PAT margin over revenue of 13%. This was achieved despite writing off well exploration costs of RM17.5 million in relation to the Rosebay-1 exploration well in Malaysia and having recognised a one-off non-cash deferred tax liability charge of RM7.3 million in the UK to reflect the impact of an increase in the Energy Profits Levy rate from 35.0% to 38.0% effective 1 November 2024.

For information, if we omit the abovementioned one-offs, a "normalised" PAT for the Current Quarter would have been higher at RM108.1 million. A summary of the adjustments is shown below.

		Malaysia	UK
PAT as reported		Add:	Add:
for the Current		Write off of Rosebay-1	Net impact arising from the one-	"Normalised" PAT
Quarter		exploration well costs	off deferred tax liability charges
			for the Energy Profits Levy
RM83.3 million	RM17.5 million	RM7.3 million	RM108.1 million

The newly acquired subsidiary, Hibiscus Brunei, contributed to the Group's financial results for the first time in the Current Quarter. The Brunei segment delivered an EBITDA of RM57.2 million and a PAT of RM15.1 million for the period between 15 October 2024 and 31 December 2024.

The Group's consistent and robust financial performance has enabled it to continue to reward its loyal shareholders with a declaration of dividends. On 25 February 2024, the Group declared the second interim single-tier dividend of 3.0 sen per ordinary share for FY2025.

FY2025		19 November 2024	25 February 2025	Guidance for FY2025


Dividends declared (sen)		2.0	3.0	8.0 (Brent ≥USD70/bbl)

	10.0 (Brent ≥USD80/bbl)

Figure 8: FY2025 Dividend declarations and guidance.

Key financial based performance metrics are shown in the charts below.

Figure 9: OPEX per boe, average realised oil, condensate and gas price and EBITDA margin by asset.

Notes to 9:

North Sabah's EBITDA margin in 3Q FY2024 and 4Q FY2024 exclude the write-offs of well exploration costs amounting to RM78.9 million and RM3.7m respectively.
Kinabalu's EBITDA margin in 4Q FY2024 excludes provision for impairment of RM61.0 million.
Anasuria incurred a Loss Before Interest, Taxes, Depreciation and Amortisation ("LBITDA") in the Preceding Quarter.
Average OPEX per boe is computed based on net production and net development OPEX divided by net oil, condensate and gas production.
Net OPEX per boe is computed as follows:
+ ( ) , ( )
PM3 CAA's average realised oil, condensate and gas price is the weighted average realised price of both oil and condensate offtakes and gas sales in the respective financial quarter. The Anasuria Cluster's average realised oil price does not include gas prices as gas production in the Anasuria Cluster is not material.

			31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
For the quarter ended		Unit	FY2024
	2024	2024	2024	2024	2023


Revenue		RM Mil	653.2	477.4	738.0	603.5	627.6	2,715.7


EBITDA	RM Mil	339.9	149.8	302.6	300.2	325.3	1,321.1

PAT		RM Mil	83.3	75.6	108.7	101.8	102.3	467.1


Basic earnings per share	Sen	10.8	9.54	13.61	12.71	12.72	58.22

Figure 10: Highlights from the Group's Profit or Loss Statement for the last five financial quarters and FY2024.

As at		Unit	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec


	2024	2024	2024	2024	2023


Total assets		RM Mil	7,666.8	5,790.1	6,604.3	6,451.8	6,362.4


Shareholders' funds	RM Mil	2,995.2	2,741.1	3,100.4	3,013.2	2,860.7

Cash and bank balances *		RM Mil	430.3	729.8	610.0	793.8	891.9


Total debt	RM Mil	417.2	304.6	371.5	394.8	406.0

Net assets per share	RM	3.95	3.51	3.88	3.77	3.56

Figure 11: Highlights from the Group's Balance Sheet for the last five financial quarters.

Notes to Figure 11:

Excludes restricted cash and bank balances.

Concluding Remarks

Following the successful completion of the Brunei acquisition, the Current Quarter's financial and operational results include the positive contribution from the Block B MLJ asset for the first time. Together with overall smooth operations across the Group, we achieved a record quarterly net average production of 28,138 boe/day. On the financial front, after adjusting for one-offs, we achieved a "normalised" EBITDA of RM357.4 million and a "normalised" PAT of RM108.1 million.

In the Current Quarter, we sold 1.4 MMbbl of oil and condensate, and 1.2 MMboe of gas. Looking forward, from a production perspective, we expect to sell a total of approximately 2.1 MMboe in Q3 FY2025 and 2.8 MMboe in Q4 FY2025 from our producing assets, with a total of 9.1 MMboe expected to be sold over the course of FY2025.

Subsequent to receiving a mandate from our shareholders to buyback our shares, as of 24 February 2025, we have purchased a cumulative 51.2 million shares, at a cost of circa RM107.4 million (or at an average of RM2.10 per share).

A second interim single-tier dividend for FY2025 of 3.0 sen was declared on 25 February 2025. As previously disclosed, subject to oil prices remaining at or above USD70/bbl, the Group targets to declare a minimum total dividend of 8.0 sen per ordinary share. Should oil prices be above USD80/bbl, the total dividend rises to 10.0 sen per ordinary share.

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