Due to the Ukraine-Russia conflict, oil and natural gas prices have scaled multi-year highs this year as Western sanctions against major exporter Russia squeezed an already under-supplied global market. Margins for making fuels like gasoline and diesel surged worldwide, boosting the profits of oil giants, including Exxon Mobil, Chevron in US, Shell in Europe, Saudi Aramco and Hibiscus Petroleum in Malaysia.

Brent Crude oil price chart below:

Exxon Mobil: HOUSTON, July 29 (Reuters) - Exxon Mobil Corp (XOM.N) on Friday posted its biggest quarterly profit ever on the back of soaring energy prices.
The top U.S. oil producer reported second-quarter net income of $17.9 billion, or $4.21 per share, an almost four-fold increase over the $4.69 billion, or $1.10 per share, it earned in the same period last year.

Chevron:
HOUSTON, April 29 (Reuters) - Chevron Corp (CVX.N) on Friday posted its highest quarterly profit in 10 years as oil and gas prices surged, and said on Friday it was looking to boost investment in natural gas on rising world demand.

Shell:
Shell Plc posted its highest quarterly earnings on record, as the company was buoyed by high oil and gas prices despite taking a $3.9 billion accounting charge on its planned exit from Russia.

Saudi Aramco:
Saudi Aramco, the giant oil producer, said on Sunday that its second-quarter profit jumped 90 percent over the same period a year ago, reaching $48.2 billion. It is the latest energy producer to report bumper earnings on the back of a surge in the price of oil.
Aramco, the national oil company for Saudi Arabia, said its earnings reflected increased demand for crude and higher refining profits. And the state-run company predicted that demand for oil would continue to grow through the rest of the decade.

Hibiscus Petroleum:
As reported above, all the oil companies such as Exxon Mobil, Chevron, Shell and Saudi Aramco have reported record profits. Hibiscus should also report record profit for its quarter ending June.
I just Googled “Hibiscus Petroleum oil production chart” and I saw the chart below.


Based on increasing oil production and higher oil price, the company should report better profit for its quarter ending June which should be announced before the end of this month.

RHB Research reported today:
KUALA LUMPUR (August 18): RHB Retail Research said Hibiscus Petroleum Bhd retreated to an oversold level, eyeing to stage a technical rebound.

In a trading stock note today, the research house said the stock has recently been observed undergoing a correction, and trading volumes have been subsiding, showing that selling pressure is tapering.

“If it manages to cross above the 86.5 sen immediate resistance, we expect a rebound towards the 91 sen mark, followed by 96 sen.

As I am writing this, I can see the latest traded Hibiscus share price is 87 sen.
​

About 10 years ago, my wife and I took the High-Speed train from Beijing city center to Shanghai city center. The 1,214 km journey took us about 3.5 hours. I think it is faster than going by airplane. After this wonderful experience, I did some research to write this article to benefit more people.

According to the International Association of Railways (UIC), high-speed rail is eight times more energy efficient than airplanes and four times more efficient than automobile use. It will also decrease greenhouse gas emissions and improve air quality.

The high-speed rail (HSR) network in the People's Republic of China (PRC) is the world's longest and most extensively used – with a total length of 40,000 kilometres (25,000 mi) by the end of 2021. The HSR network encompasses newly built rail lines with a design speed of 200–350 km/h (120–220 mph). China's HSR accounts for two-thirds of the world's total high-speed railway networks. Almost all HSR trains, track and service are owned and operated by the China Railway Corporation under the brand China Railway High-speed (CRH).

High-speed rail developed rapidly in China since the mid-2000s. CRH was introduced in April 2007 and the Beijing-Tianjin intercity rail, which opened in August 2008, was the first passenger dedicated HSR line. Currently, the HSR extends to all provincial-level administrative divisions and Hong Kong SAR, with the exception of Macau SAR. The HSR network reached just under 38,000 km (24,000 mi) in total length by the end of 2020. The HSR building boom continues with the HSR network set to reach 70,000 km (43,000 mi) in 2035.

The map below shows the rate of construction of HSR from 2008 -2020 in China.

China's early high-speed trains were imported or built under technology transfer agreements with foreign train-makers including Alstom, Siemens, Bombardier and Kawasaki Heavy Industries. After the initial technological support, Chinese engineers have since re-designed internal train components and have built and produced indigenous trains manufactured by the state-owned CRRC Corporation, especially on newer lines. The advent of high-speed rail in China has greatly reduced travel time and has transformed Chinese society and economy. A World Bank study found "a broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality."

​Despite worries about its cost, debt and profitability, a Paulson Institute research found that the net benefit of the high-speed rail is $378 billion and the return on investment is 6.5%. The return on investment would be much more if the saving of train users’ time and energy are taken into consideration.

Notable HSR lines in China include the Beijing–Guangzhou high-speed railway which at 2,298 km (1,428 mi) is the world's longest HSR line in operation, and the Beijing–Shanghai high-speed railway with the world's fastest operating conventional train services. The Shanghai Maglev is the world's first high-speed commercial magnetic levitation ("maglev") line, whose trains run on non-conventional track and reach a top speed of 430 km/h (267 mph). In 2020, China started testing a maglev prototype train that runs at 600 km/h (373 mph) and planned a 2025 launch date.

The Kuala Lumpur–Singapore high-speed rail (HSR) is a cancelled railway project to link Kuala Lumpur, Malaysia to Singapore via a high-speed rail line. It was first proposed by then Malaysian prime minister Najib Razak in September 2010. Singapore prime minister Lee Hsien Loong formally agreed to the joint project in February 2013, with the HSR originally expected to be completed by 2026.

The 2018 Malaysian general election resulted in the defeat of Najib Razak, with his successor Mahathir Mohamad initially announcing that the project would be scrapped. Nevertheless, during a visit to Japan on 12 June 2018, Mahathir said that the project would merely be postponed due to high costs. On 5 September 2018, it was announced that the HSR operations would start in January 2031.

Due to the Ukraine-Russia conflict, oil and natural gas prices have scaled multi-year highs this year as Western sanctions against major exporter Russia squeezed an already under-supplied global market. Margins for making fuels like gasoline and diesel surged worldwide, boosting the profits of oil giants, including Exxon Mobil, Chevron in US, Shell in Europe and Hibiscus Petroleum in Malaysia.

How does high oil price affect the prices of everything? The movement of everything needs transport. For example, everything in your house has to come from somewhere. Your clothes came from China and all the materials for building your house came from many factories located somewhere in the world. That is why high oil price has pushed up prices of everything and affecting everybody in the world.

Brent Crude oil price chart above:

Exxon Mobil:

HOUSTON, July 29 (Reuters) - Exxon Mobil Corp (XOM.N) on Friday posted its biggest quarterly profit ever on the back of soaring energy prices.

The top U.S. oil producer reported second-quarter net income of $17.9 billion, or $4.21 per share, an almost four-fold increase over the $4.69 billion, or $1.10 per share, it earned in the same period last year.

Chevron:

HOUSTON, April 29 (Reuters) - Chevron Corp (CVX.N) on Friday posted its highest quarterly profit in 10 years as oil and gas prices surged, and said on Friday it was looking to boost investment in natural gas on rising world demand.

Shell:

Shell Plc posted its highest quarterly earnings on record, as the company was buoyed by high oil and gas prices despite taking a $3.9 billion accounting charge on its planned exit from Russia.

Hibiscus Petroleum:

I just Googled “Hibiscus Petroleum oil production chart” and I saw the chart below.

Based on increasing oil production and higher oil price, the company should report better profit for its quarter ending June which should be announced before the end of this month. 

My sole purpose of writing this article is to share my research with you. I am not asking you to buy to support the share price because the daily traded volume is 20-30 million shares. Moreover, I notice that a few big investors like to push the share price down so that they can buy it at cheaper prices. In any case, investors should wait patiently for the company’s profit announcement for the quarter ending June which should be announced before the end of this month.   

On 10 Aug I posted my article “Why did I sell all my Hibiscus shares?”. I am ashamed to admit my mistake. This morning I just Googled “Hibiscus oil production chart” and I saw Hibiscus crude oil production chart below:

This morning I also Googled “Brent Crude oil price chart” and I saw Brent Crude oil price chart above.

When the company can increase oil production as shown on the oil production chart and also can sell its oil production at the higher price as shown on the oil price chart, the company should continue to report increasing profit for the next few quarters. As a result, its share price should go up higher and higher.

Its share price has been dropping from Rm 1.50 to the current price level of 86 sen as shown on the price chart above. However, its share price has been stabilised in the last 1 month as shown on the 1-month price chart above. Looks like it is quite safe to buy Hibiscus at this price level.

Due to the Ukraine war, oil and gas prices have been shooting up. As a result, all oil producing companies have reported record profit. For example, Shell which posted another record profit as shown below:  

The company made the following announcements:

Repsol Asset Acquisition: Completed the trans formative acquisition on 24 January 2022. Assets are expected to almost triple the Group’s net daily oil, gas and condensate production.

Hibiscus expects threefold increase in O&G output due to Repsol deal (Repsol Exploración, S.A)

If the company can triple its oil & gas production why is its share price dropping continuously? It has been dropping in the last 3 months as shown on the chart below.

If Hibiscus can triple its oil & gas production, its share price should be shooting up. If it is really so good, why is it dropping continuously?

I believe its price chart which cannot lie. That Is why I sold all my Hibiscus shares and cut loss. 

People often lose money in the markets because they don't understand economic and investment market cycles. Business and economic cycles expand and decline. The boom cycles are fuelled by a growing economy, expanding job market, and other economic factors.

People also often lose money in the markets because they let emotions—mainly fear and greed—drive their investing. Moreover, they often lose money, because they are not lucky. Luck is when preparedness meet opportunity.

You must remember that our ultimate aim in life is happiness and the key to happiness is contentment. Don’t be greedy and take risk in the stock market.

Today is the 8^th day of the 8^th month of the year which is an auspicious day to write this lesson for investors.  

I just Googled “what percentage of people lose money in the stock market” and the answer was 90%. 

There is an old but famous joke about stocks and the stock market. If you have lost some money in the stock market and feel bad about it, don’t worry. Ask somebody you know about their losses in the stock market, and you will feel better that you lost less money.

While this joke has been going around for several decades now and is still quite relevant because there is absolutely no shortage of people who lose money in stock markets daily. According to popular estimates, as much as 90% of people lose money in stock markets, including both new and seasoned investors.

People often lose money in the markets because they don't understand economic and investment market cycles. Business and economic cycles expand and decline. The boom cycles are fuelled by a growing economy, expanding job market, and other economic factors.

People also often lose money in the markets because they let emotions—mainly fear and greed—drive their investing. Moreover, they often lose money, because they are not lucky. Luck is when preparedness meet opportunity.

You must remember that our ultimate aim in life is happiness and the key to happiness is contentment. Don’t be greedy and take risk in the stock market.