do take note that RM has weaken as well. even if the crude is cheaper now, exchanging it back to RM? financial report in RM. need to take that into consideration too.
the trend is a waterfall dropping, it seems similar to what happen in year 2020 when covid started. definitely it will rebound but before that it will be a sharp drop, now still in progress of trending down.
Hibisccus average oil producing cost is low enough to make good profit even oil price drops to $ 80/ barrel .Its newly purchased oil fields in Repsol deal , would boost its profitability in the foreseeable future. Coming quarterly report would be a confidence booster.
Just watch putin come July 21st. Will he turn the gas back on for Europe. If he does not then oil will get a major boost. Just for everyone's information Nordstream pipeline is under service and repair , GAS has been turned off to the Euro countries. Some analyst are warning of major consequences if Putin decides not to turn the gas back on.
After sleepy Joe's meeting with the Crown Prince yesterday, any good news announced on Oil supply agreement from US Media???.....zilch....nada....zero....Biden on bent knees also didn't help. Slap, slap!..
Thanks for current weak sentiment, finally able to accumulate and switch to Hibiscs till 45% of my portfolio ( other 55% is Genting Berhad only). As a long term investor, I am willing to take the risk to grow my wealth for next 3 to 5 years together with hibiscs and Dr Kenneth.
Warren Buffett kept telling us, “ Don’t buy stock, just buy business”. Why I prefer Hibiscs business than other company :
1) Debt free company – no risk of bankruptcy – no worry in current higher interest rate environment
2) No inventory risk – Hibiscs able to sell out every single drop of crude oil and natural gas it produces
3) Low cost producer – average OPEX below USD 20/bbl – if Brent price more than USD 30/bbl, Hibiscs able to generate positive cash flow by delaying CAPEX ( less risk of bankruptcy) – if Brent price more than USD 40/bbl, Hibiscs able to generate net profit – if Brent price ranging USD 50-70/bbl, Hibiscs able to generate margin of net profit around 10-20% – if Brent price more than USD 70/bbl, Hibiscs able to generate margin of net profit more than 20% – if Brent price more than USD 80/bbl, Hibiscs able to generate strong free cash flow – FYI, Hibiscs can sell crude oil with Brent price at least 5% premium.
4) Excellent management team – always acquired valuable oilfields at extremely low price during low Brent price environment – able to maintain average OPEX below USD 20/bbl without compromising safety issues.
5) Strong moat – no obvious upstream competitor in Malaysia for next 5 years – Very difficult to get borrowings from bank or private fund to start up a brand new upstream oil and gas company due to ESG issue – company needs to have experienced management team, good track records and strong financial sheet to deal business with Shell, ExxonMobil, BP Oil, Repsol, Petronas, PetroVietnam and Trafigura. – During Repsol assets bid last year, Repsol chosen Hibiscs even though Hibiscs’ bid price was lower than his competitors
So, can you recommend me another company in Malaysia better than Hibiscs which has excellent management team, debt free, no inventory risk, low cost producer and strong moat?
My sentiments exactly Twynstar, well put. I also like that they have diversified into gas.. Which is way up this month and we know the supply problems Europe is having.. I also think they are ambitious and want to continue to grow, they have very valuable assets to develop in the north sea which, through partnership, may cost them nothing.. I also don't think that Singapore Energy SPAC has gone away either.. A great business with vision. Exciting times ahead
So boring so just let me be your fake technical analyst for the day. After Hibiscus broken RM1, it has dropped to the fibisucker support of 0.80-0.84. With the low volumes currently, means margin call etc no longer exists for now (I double confirmed with my Maybank broker) Going forward, up or down, it's as easy as flipping your coin and choose. However, i choose UP because my sharman told me that the moon is alligned with the sun and it means flower blossom. You better believe me because i am the creator of bitcoin. I didn't reveal my identity because i just wanna help the world
Make a rough calculation base on the info provided by Hibiscus analyst report and upcoming QR should produce a profit between RM 300M to RM 350M. If i use the same amount of Boe of oil and gas for next year at average of USD 80, i think it should generate a profit of RM 400 to 500 Million. Just a very rough estimation. Hence, not a bad profit for the company.
Nine months revenue = RM 1.08B; Free Cash Flow = RM616M-79M(Capex)-21M(Intangible) = RM516M Estimated 12 months revenue = RM 1.83B; FCF = RM 850M With such large FCF, what to do with cash? Buy back shares? 10sen dividend? Keep to develop Sunflower/Marigold?
Putin might closed the tap to EU. There are signs already that Putin is slowing down their supply. Do expect oil price to hit $300/tong once it happens. Hibiscus financial will shoot thru the roof.
@zhangzuode the one thing i respect about the mgmt of hibiscus is that they seem smart but also prudent, a combination very difficult to find in this world. most smarties are super arrogant and fall due to that.
i also secretly hope that they will do a shock & awe by declaring crazy dividends some time before CY22 ends. then we will see who has been swimming naked and who's in a YACHT :P
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Posted by NatsukoMishima > 2022-07-14 21:37 | Report Abuse
Hibis holder will know the meaning of run no way soon ! 60 sens coming !