Posted by KingKong_Doll > 2021-11-05 08:12 | Report Abuse

Christmas coming, winter coming and then CNY coming. All within 3-4 months. US data shows brent oil build-up but the gasoline, kerosene, and diesel are at an all-year low. I think refinery refined less due to high fuel price and hope that brent price will drop. So now they are operating at a minimum stock but if demand catches up due to holiday and winter, they have no choice but to refine more brent oil into fuel. This might create a demand for brent.

Posted by greed123 > 2021-11-05 11:02 | Report Abuse

…be careful of these greenwashing companies

Posted by Traderjoes > 2021-11-05 11:30 | Report Abuse

https://www.theedgemarkets.com/article/oil-rises-after-opec-rejected-call-more-supply

Posted by twynstar > 2021-11-07 15:07 | Report Abuse

O&G players may form consortiums to bid for Exxon Mobil’s Malaysian assets
--November 17, 2020 16:00 pm +08


SEVERAL local oil and gas (O&G) companies are understood to be interested in acquiring Exxon Mobil Corp’s assets in Malaysia, which are up for sale, but are said to be more comfortable forming consortiums to bid for these assets because of the hefty price tag of US$2 billion to US$3 billion (RM8.26 billion to RM12.39 billion).

According to its website, these assets produce oil and gas under four PSCs with Petronas and are responsible for about a fifth of oil production and about half of the natural gas supply to Peninsular Malaysia.


https://www.theedgemarkets.com/article/og-players-may-form-consortiums-bid-exxon-mobils-malaysian-assets

Posted by twynstar > 2021-11-07 15:10 | Report Abuse

Exxon warns some assets may be at risk for impairment due to climate change
---November 4, 2021


Exxon Mobil Corp (XOM.N) on Wednesday said for the first time in a securities filingthat some of its oil and gas properties may face impairment due to climate change.


https://www.reuters.com/business/energy/exxon-warns-some-assets-may-risk-impairment-due-climate-change-filing-2021-11-03/

Posted by zhangzuode > 2021-11-07 17:45 | Report Abuse

The alternative is for Exxon to carve out its Malaysian asset into smaller bits to sell.

At US$ 2 to 3B, there are no local (O&G) players.

PTT could have the free cash flow.

Shell also selling one of its Sarawak field: https://www.thestar.com.my/business/business-news/2021/07/22/shell-launches-sale-of-stakes-in-malaysian-oil-and-gas-fields--document. But as a non-operator, it is not so attractive.

Since Hibiscus might raise a US$300m bond, there might be another asset buy around the corner.

Posted by Titan > 2021-11-07 20:26 | Report Abuse

Anyone read the budget 2022? Check out the lampiran 21 Galakan Cukai Bagi Projek
Late-Life Assets Untuk Industri
Petroleum Huluan, page 127. It greatly benefit hibiscus.

Posted by twynstar > 2021-11-07 22:33 | Report Abuse

Galakan Cukai Bagi Projek Late-Life Assets Untuk Industri Petroleum Huluan ( kedudukan semasa ) :

1) Kadar cukai pendapatan diturunkan daripada 38% kepada 25%

2) Elaun modal dipercepatkan daripada 10 tahun kepada 5 tahun;

3) Pengecualian duti eksport ke atas produk petroleum yang dikeluarkan.



Cadangan:
1) Elaun Modal Dipercepatkan dalam tempoh 2 tahun

2) kerugian daripada aktiviti decommissioning dibenarkan dibawa ke belakang (carryback losses) untuk diserap dengan pendapatan bagi 2 tahun taksiran berturutan sebelumnya (consecutive immediate preceding year). Baki kerugian yang tidak dapat diserap akan diabaikan



Tarikh Kuat Kuasa :
Bagi Kontrak Perkongsian Pengeluaran Late-Life Assets yang
diberikan mulai 1 Januari 2020 hingga 31 Disember 2029.

Posted by twynstar > 2021-11-07 22:35 | Report Abuse

Oil Price Dynamic

https://klse.i3investor.com/blogs/ZZD/2021-11-07-story-h1593718297-Oil_Price_Dynamic.jsp#google_vignette


by Zhang Zuode

Posted by Titan > 2021-11-08 05:37 | Report Abuse

The tax reduction of 13,% will greatly benefit Hibiscus. I'm not able to quantified the benefits of the other incentives. Mayb some tax expert can share. I think the repsol purchase might also benefitted from the budget 2022.

Posted by zhangzuode > 2021-11-08 08:12 | Report Abuse

twynstar, thank you for the tax info and appreciated the promo...

Posted by zhangzuode > 2021-11-08 08:22 | Report Abuse

Titan, indeed should Repsol assets (or NSabah too) be considered late-life assets, then the reduced tax rate is most welcomed. As usual - devil is in the details, what constitute late-life?

I can appreciate what the government is trying to do - incentivizing operators to continue production. So, maybe Exxon or Shell might reconsider selling.

Posted by Titan > 2021-11-08 08:40 | Report Abuse

I think they did says that anything within 10 yrs contract. But I assume most of hibiscus asset is Malaysia should be some what late life.

Posted by KingKong_Doll > 2021-11-08 09:19 | Report Abuse

Just says that every year ur business profit get tax 24%, of course you try ur level best to see what can deduct tax or deferred it. Suddenly gomen say this yr i reduce to 15% la. Wat do u think? Once in a lifetime opportunity leh. Of course will run full production and see how to convert to profit loh.......betul o not?

By doing the same things, you already gain additional 14% profit wor. Mana u mau cari....

Posted by derrtan > 2021-11-08 10:46 | Report Abuse

may i know if the sales of Repsol oil will be reflected in the coming QR?

Posted by kakiminyak > 2021-11-08 11:23 | Report Abuse

If not late life Repsol won't sell the asset. Be rest assured this will benefit Hibiscus. Thanks for the info guys.

Posted by KingKong_Doll > 2021-11-08 11:46 | Report Abuse

Just keep till the end of next year and collect your profit. Oil price high. Purchase of repsol. Tax reduction from 38% to 24% + other incentives as well. It looks like that section of the budget was purposely done for Hibiscus. I'm not sure who else benefitted from it....lol

Posted by kakiminyak > 2021-11-08 12:14 | Report Abuse

ha ha yeah!!

Posted by nixonteh85 > 2021-11-08 12:36 | Report Abuse

swing (accumulation) lagi, 1-2 month

Posted by apple168 > 2021-11-08 14:03 | Report Abuse

https://news.seehua.com/?p=768725

Posted by derrtan > 2021-11-08 14:20 | Report Abuse

may i know if the sales Repsol oil will be reflected in the coming QR?

Posted by apple168 > 2021-11-08 15:39 | Report Abuse

https://www.cnbc.com/2021/11/06/bill-gates-big-oil-companies-will-be-worth-very-little-in-30-years.html

Posted by kahhoeng > 2021-11-08 16:30 | Report Abuse

Unless developed countries were to finance developing countries green energy supply system, there's little chance developing countries can forgo crude oil or coal, not to mention natural gas that most developed countries are using right now. The sad truth now, though, is developed countries have failed to commit to financing these projects, only to lecture them to comply while developed countries are those that consume the most carbon now. It's like the rich in developed countries CLAIMED that they don't mind higher taxes so long their money goes into good use when they are currently paying the least, what a joke!

Posted by apple168 > 2021-11-08 16:59 | Report Abuse

Go go go… let us dump high… few more batches to dump

Posted by kokchengkai > 2021-11-08 21:12 | Report Abuse

Derrtan should b reflect in 2022 Q1

Posted by derrtan > 2021-11-08 22:36 | Report Abuse

kokchengkai 2022 Q1 is coming QR u know...

Posted by KingKong_Doll > 2021-11-09 08:37 | Report Abuse

This yr winter come early. China reporting a heavy snowstorm. Coal mining also will be affected I think. So, use more oil?

Posted by kokchengkai > 2021-11-09 19:05 | Report Abuse

Derrtan sorry mean after 2022.. the deal with repsol not yet complete

Posted by apple168 > 2021-11-09 20:36 | Report Abuse

Bill Gates said “Oil industry is sunset business! New Energy is the way forward!”

Posted by twynstar > 2021-11-09 23:02 | Report Abuse

Oil spare capacity to diminish as jet demand returns, Aramco says

"The industry's spare capacity, currently at 3-4 million barrels per day (bpd) is providing some comfort to the market, however, my concern is that the buffer ... might diminish, especially next year when demand is expected to pick up further," Nasser told the Nikkei Global Management Forum.


"Expanding capacity in our industry takes around 5-7 years, and there is not enough investment in the world to increase capacity, this is a huge concern," Nasser said.


https://www.theedgemarkets.com/article/oil-spare-capacity-diminish-jet-demand-returns-aramco-says

Posted by kakiminyak > 2021-11-10 07:39 | Report Abuse

Don't worry what Bill Gates say about oil industry as he is making prediction for 30 years in the future. By then he may be Gate keeper in heaven.

Posted by kakiminyak > 2021-11-10 07:40 | Report Abuse

Today Hibiscus should fly, that is the only important thing. It is about today!!!!

Posted by KingKong_Doll > 2021-11-10 08:30 | Report Abuse

Brent 85 again oh.....hibiscus profit sure triple le as oil has been hovering around this area.

Posted by Bgt 9963 > 2021-11-10 08:39 | Report Abuse

Oil is booming !

Posted by kahhoeng > 2021-11-10 10:27 | Report Abuse

the last time brent tried to break 86, hibiscus reached a high of 97, now brent is trying to break 86 again, yet hibiscus barely hold on to 93, sigh!

Posted by kahhoeng > 2021-11-10 10:27 | Report Abuse

can't help but hope that hibiscus management can announce quarterly report and repsol acquisition details soon...

Posted by Macgyver11 > 2021-11-10 17:00 | Report Abuse

Good news guys,
Biden administration chose not to tap from SPR...big relief for oil price. Tomorrow got big rally. Fasten your seat belt.

Posted by Titan > 2021-11-10 17:47 | Report Abuse

QR release....haven look into the detail but ok la

Posted by ZoeZoe > 2021-11-10 19:49 | Report Abuse

Amazing QR with reference to the EBITDA! Heard that the Ebitda was estimated based on 60 + per barrel and now brent is hovering about 83-84! I believe next round of QR will be bombastic!

Posted by kahhoeng > 2021-11-10 20:13 | Report Abuse

60+ oil? Brent traded 70+ between July-Sep quarter

Posted by kokchengkai > 2021-11-11 01:06 | Report Abuse

Profit is maximum oledi coz critical components in anasuria oil field no stock n not yet replace , management no mention when can settle problem. Profit wil Only boom after complete repsol deal ..
Cash increase , cashflow maintain strong ..

Posted by joryus4855 > 2021-11-11 15:13 | Report Abuse

Petrol price up, how come this stock dropping. Helo, give some hope, dont like that

Posted by KingKong_Doll > 2021-11-11 15:29 | Report Abuse

Glance through the QR report. On the bright side, the last QR, the selling price was between $70-75, and the production rate of 81%. Next QR, the selling price should be 80 to 85% and the production rate should be around 90%? Meaning got 20% room of improvement loh....lol....

Posted by izoklse > 2021-11-12 01:29 | Report Abuse

Video By Hibiscus on : 1st Quarter Results for the period ended 30 September 2021

https://www.youtube.com/watch?v=FAfBZL--Zts

Posted by Macgyver11 > 2021-11-12 12:25 | Report Abuse

What happen, why drop so much today. I think can go even up to 0.85.

Posted by DragonG > 2021-11-12 12:34 | Report Abuse

Update from AmBank after an analyst briefing with management yesterday:
Hibiscus will not be proceeding with a proposed 5-year US$ bond issuance for the proposed US$212.5mil Repsol acquisition as the interest rates offered by financial institutions ranged over 8% which management deemed excessive given the company’s B1 rating from Moody’s Investors Service and B+ from S&P Global Ratings.
Instead, the group expects the deal to be funded from operational cash generated from the proposed Repsol assets commencing on 1 January 2021, US$80mil Trafigura prepayment facility (which has a more acceptable implied interest rate of below 4%) extension to Dec 2023 and RM204mil convertible redeemable preference shares which were issued in November last year. In 1H2021, the combined Repsol assets registered an EBITDA of US$80mil when Brent crude oil prices averaged at US$65/barrel vs over US$80/barrel currently.
The group hopes to secure the necessary approvals from the Malaysian and Vietnamese authorities to complete the Repsol deal by January 2022.

Posted by zhangzuode > 2021-11-12 13:02 | Report Abuse

Yes, interest over 8% is too high. With financial institutions extremely adverse to oil & gas projects can only be good for oil price.

Posted by kahhoeng > 2021-11-12 20:51 | Report Abuse

the 0.01 dividend should be cancelled unless Hibiscus is confident not needing further share issuance to finance Repsol acquisition

Posted by bobvic96 > 2021-11-14 20:34 | Report Abuse

https://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=24981

Investment Highlights
We maintain our BUY recommendation on Hibiscus Petroleum (Hibiscus) with an unchanged sum-of-parts-based fair value of RM1.18/share. This already assumes the value accretion from the proposed acquisition of Repsol’s assets commencing in January 2022 and reflects a premium of 3% from our ESG rating of 4 stars.

It also implies an enterprise value (EV)/proven and probable reserves (2P) valuation of US$6.70/barrel, half of EnQuest's US$13/barrel and 57% discount to regional average of US$16/barrel.

We maintain our forecasts following an analyst briefing yesterday with these salient highlights:
Hibiscus will not be proceeding with a proposed 5-year US$ bond issuance for the proposed US$212.5mil Repsol acquisition as the interest rates offered by financial institutions ranged over 8% which management deemed excessive given the company’s B1 rating from Moody’s Investors Service and B+ from S&P Global Ratings.

Instead, the group expects the deal to be funded from operational cash generated from the proposed Repsol assets commencing on 1 January 2021, US$80mil Trafigura prepayment facility (which has a more acceptable implied interest rate of below 4%) extension to Dec 2023 and RM204mil convertible redeemable preference shares which were issued in November last year. In 1H2021, the combined Repsol assets registered an EBITDA of US$80mil when Brent crude oil prices averaged at US$65/barrel vs over US$80/barrel currently.

The group hopes to secure the necessary approvals from the Malaysian and Vietnamese authorities to complete the Repsol deal by January 2022. If the deadline is missed, the sale and purchase agreement can be extended to June next year without incurring any penalties. In our view, a delay may be positive for Hibiscus given the continued accumulation of cash arising from the Repsol assets’ operations.

The group is currently pitching for an FPSO-based development plan for its 87.5%-owned Marigold and Sunflower (M&S) fields in Licence P198 at the North Sea vs Ithaca Energy’s tieback solution to the Repsol/Sinopec JV’s Piper B platform that could defer first oil by a year to 2025.
While awaiting the decision of UK’s Oil & Gas Authority for the M&S development plan, Hibiscus remains on an accelerated schedule to develop its 70%-owned Teal West discovery in Licence P2535 which will deploy a subsea pipeline tieback to the nearby Anasuria FPSO. Teal West, which has 4mil barrels of oil reserves, is still targeted to achieve first oil by late 2023.
Even though Hibiscus’ 1QFY22 production volumes were affected by Covid 19 execution delays in the 50%-owned North Sabah production sharing contract and subsea riser malfunction in Anasuria, output is expected to improve going forward. North Sabah’s production is poised to normalise as average uptime improved from 81% in 1QFY22 to 91% in October 2021, raising daily net production from 5,311 barrels to over 6k barrels. North Sabah will continue to be the main earnings generator, accounting for 78% of the group’s 1QFY22 net profit, lower than 89% in FY21 on Anasuria’s improved earnings.

We remain positive on Hibiscus’ proposed acquisition of Repsol’s assets for US$212.5mil cash, still aimed for completion by January 2022. Recall that this will triple the group’s daily production to 26.8K barrels of oil equivalent and increase its 2P reserves by 72% to 81mil boe. Based on the EV for the group’s expanded 2P reserves, Hibiscus is currently only trading at US$4.60/barrel, at an unjustified discount of 65% to its closest peer, UK-listed EnQuest and 70% of regional average (Exhibit 3).

Posted by zhangzuode > 2021-11-15 10:44 | Report Abuse

Vaclav Smil: Distinguished Professor Emeritus at the University of Manitoba and a Fellow of the Royal Society of Canada (Science Academy) - Moving Away from Fossil Fuels (https://www.youtube.com/watch?v=kxjiIoZoO0w)