Chairman Zainul Rahim Mohd Zain announced Hibiscus Petroleum Bhd's additional one sen dividend per share on Thursday. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (Sept 12): Oil and gas exploration and production (E&P) group Hibiscus Petroleum Bhd (KL:HIBISCS) is proposing an additional one sen dividend per share for the financial year ended June 30, 2024 (FY2024).

The proposed dividend, announced by chairman Zainul Rahim Mohd Zain and subject to approvals, will raise its full-year dividend payout to 8.5 sen per share, up from the adjusted 3.25 sen per share for FY2023.

The independent E&P outfit previously guided for 7.5 sen dividend per share in FY2024 previously.

For FY2025, Hibiscus guided for dividend payout of at least eight sen per share, if Brent crude oil price averages at US$70-US$79/bbl. This could go to 10 sen per share if the benchmark crude averages US$80/bbl or above in the period, Hibiscus said in a separate statement.

Hibiscus' capital allocation framework "underpins our capital expenditure and prioritises dividend payout", managing director Dr Kenneth Pereira said.

"We have firm value triggers in terms of ongoing projects to be monetised in 2024 and 2025, including our North Sabah SF30 Waterflood project in Malaysia, the Teal West development in the UK and the proposed acquisition of the gas producing asset in Brunei. We also have our PM3 master hub plan in place to further accelerate growth from 2026 onwards.

"Accordingly, we are comfortable in giving our shareholders more granularity in our dividend guidance," Pereira said.

With the additional dividend, Hibiscus would have a FY2024 dividend yield of 4.17% based on its share price of RM2.04 at market close on Thursday, and 3.92% forward yield for FY2025.

In FY2024, Hibiscus' net profit rose 16.6% year-on-year to RM467.1 million or 58.22 sen per share, from RM400.52 million, as revenue rose 15.82% to RM2.72 billion from RM2.34 billion.

At RM2.04 per share, Hibiscus had a market capitalisation of RM 1.62 billion. The counter is trading at a forward price-earnings ratio of 3.64 times, based on FY2025 consensus forecast earnings per share of 56 sen, according to Bloomberg data.

The shares are down 19.69% this year.