KUALA LUMPUR (Aug 23): Hibiscus Petroleum Bhd’s annual revenue surpassed the RM2 billion mark for the first time in the financial year ended June 30, 2023 (FY2023), as it incorporated the full-year contribution from the assets of Peninsula Hibiscus Group (formerly Repsol Exploración’s upstream assets), which it acquired in January last year for US$212.5 million.

Net profit for the year came in at RM400.52 million, down 38% from RM652.94 million in FY2022, mainly because the previous year had incorporated a negative goodwill or bargain purchase gain of RM317.32 million, its bourse filing showed.

Excluding the negative goodwill, full-year earnings grew 19.3% from FY2022, with earnings before interest, taxes, depreciation and amortisation rising to RM1.27 billion from RM1.08 billion, as group revenue climbed 38% to RM2.34 billion from RM1.7 billion.

The jump in group revenue came despite a lower fourth quarter revenue of RM503.6 million, down 42% from RM868.37 million in the corresponding quarter last year, as its North Sabah operations were impacted by a planned major maintenance campaign that took place from April to August and an ongoing well intervention campaign, which resulted in the segment’s revenue more than halving to RM133.74 million from RM316.04 million.

The decline in quarterly revenue, together with higher taxes of RM44.55 million — as opposed to a tax credit in the corresponding quarter last year — led to a lower fourth quarter net profit of RM123.28 million, versus RM255.39 million previously. Ebitda for 4QFY2023 came in at RM326.48 million, compared with RM384.39 million previously.

The group declared a third interim dividend of half a sen per share, translating into total dividends of two sen for FY2023, comparable to its payout for FY2022.

Hibiscus said it sold 4.5 million barrels (MMbbl) of oil and condensate throughout FY2023, with 2.6 million barrels of oil equivalent (MMboe) of gas. “On a combined basis, this represented an increase of 55% or 2.5 MMboe from FY2022,” it added.

For FY2024, the group expects to sell 7.5 to 7.8 MMboe of oil, condensate and gas, 6% to 10% more than the 7.1 MMboe it achieved in FY2023.

Hibiscus managing director Dr Kenneth Gerard Pereira said the group is pleased that its annual revenue achieved the RM2 billion mark for the first time, with the full-year contribution of Peninsula Hibiscus Group’s assets, and “look forward to increasing our output by 6% to 10% in FY2024, as evidenced by our larger production volume guidance of 7.5 to 7.8 MMboe”.

The group is also continuing its work to increase production in Malaysia and the UK, he said.

“With its first steel cut in May 2023, the SF30 waterflood Phase 2 project in North Sabah is underway and on track to see first oil in calendar year 2024 (CY2024). The environmental statement and field development plan approvals and the granting of the production consent for the Teal West field are major achievements that will result in the prolongation of the economic life of the Anasuria Cluster. We look forward to the first oil from Teal West in late CY2024/early CY2025.”

Share consolidation proposed

In a separate announcement, the group proposed to consolidate every five existing Hibiscus Petroleum shares into two shares, to reduce volatility in its share price.

This is also expected to increase market interest in the company’s shares for a wider pool of investors seeking share price stability and longer-term growth, as well as institutional investors and investment funds whose investment guidelines currently limit trading of securities which are priced below a prescribed floor.

Hibiscus shares rose two sen or 2.14% to close at 96 sen on Wednesday (Aug 23), valuing the company at RM1.92 billion.