Posted by Apple4Oranges > 2024-02-29 20:12 | Report Abuse

Very volatile this oil market ..

https://www.reuters.com/business/energy/oil-prices-ease-us-crude-stock-build-fuels-demand-fears-2024-02-29/

Posted by kahhoeng > 2024-03-01 11:27 | Report Abuse

at curent brent price, Hibiscus is at least making 400-450 million every year, making Hibiscus a company with PE less than 5.2???

Posted by mamakspecial > 2024-03-01 13:01 | Report Abuse

You think the red sea attack will stop? israel and palestine has been at war for decades..you think israel can erdicate hamas that easily..hamas is an idea..not a group of radicals ..you cant destroy an idea..unless israel kills all palestian..there will always be another hamas to fight israel ..israel is a thorn in the middle east..at least at the eyes of the arabic world..their common enemy is israel even though arab countries are not united..its because of USA..arab world just let israel be..so houthi will continue to shoot ships that sail that red sea strip cos usa and uk has alr attacked them..so now its houthi agenda is not just palestine ...they are also at war with usa and uk too with iran strongly backing them..things wont go back to normal..oil price and freight charges will remain high..unless opec and usa both of them ramp up the production non stop..but opec wont allow that..

Posted by Six6thsense > 2024-03-01 14:49 | Report Abuse

Boss behind pattern more than badminton

Posted by Sangranghaeyo > 2024-03-01 16:54 | Report Abuse

Long war on the red sea without a doubt...unless Israel promise to cease fire and admit Gaza is a country. Ha

Posted by EngineeringProfit > 2024-03-01 19:56 | Report Abuse

South Furious Merah exploration well.

Posted by wattsy > 2024-03-01 20:00 | Report Abuse

Who's dumping hibiscus.. There's been quite a sell off of shares the last few trading sessions .. Don't quite get it as fundamentals are outstanding.. Wish Hibby would buy more shares and support longer term shareholders positions. .

Posted by kahhoeng > 2024-03-01 21:03 | Report Abuse

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3427300

Reference is made to a disclosure made on 22 November 2023 (and further updated on 20 February 2024) in respect of an exploration drilling campaign (“campaign”) conducted by our indirect wholly owned subsidiary SEA Hibiscus Sdn Bhd (“SEA-H”). The campaign comprised a drilling program to drill 3 exploration wells, namely South Furious Ungu, South Furious Ungu ST and South Furious Merah to evaluate prospective Near Field exploration locations within the boundaries of the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (“2011 PSC”).

The campaign initially kicked off at the South Furious Ungu well location on 29 October 2023 and later moved to the South Furious Merah location on 19 January 2024 after drilling the South Furious Ungu ST well. Whilst the drilling rig is still on location, it is expected to be released as soon as work is completed at the South Furious Merah site soon.

South Furious Ungu Well and South Furious Ungu ST Well

At the Ungu Prospect location, several samples of gas and one sample of oil were recovered. Subsequent laboratory analysis of the samples confirmed these preliminary findings. All the data collected through drilling operations at the Ungu Prospect location are currently being reviewed and after a more detailed interpretation will be developed to inform the relevant parties of the proposed next steps.

South Furious Merah Well

At the Merah drill location, evaluation and sampling efforts recovered one sample of gas. This sample has been sent for further laboratory analysis. Even though a sample of gas was recovered and brought to surface, our preliminary assessment is that hydrocarbon volumes seen in this well may not achieve commercially viable economic thresholds.


Rig: Next Steps

The Petro Vietnam-III drilling rig will soon be released for further drilling activity in Peninsula Malaysia with Hibiscus Malaysia Oil and Gas Limited.

Costs

Capital costs (net of tax to SEA-H) estimated for the Ungu wells are expected to be in the range RM54 million whilst capital cost estimates for the Merah well are expected to be in the range RM27 million. At this stage, we expect to write off the capital cost estimates of RM27 million for the Merah well in the Group’s financial statements for the quarter ending 31 March 2024. The treatment of the costs of the Ungu well in the financial statements will be ascertained upon confirming the final results from the Ungu well, and will be announced at the appropriate time. All capital costs were funded from internal resources and the costs associated with the campaign have been included in the SEA-H cost recovery bank.

All other operations are progressing smoothly.

This announcement is dated 1 March 2024.

Posted by kahhoeng > 2024-03-01 21:33 | Report Abuse

some knew about the Merah Well negative news few days back

Posted by EngineeringProfit > 2024-03-01 21:40 | Report Abuse

Finally the bad news is out. And sharks can recollect the ticket cheaply, as hib SBB. Cheers! I'm back

Posted by Six6thsense > 2024-03-01 21:53 | Report Abuse

Aji Azor announcement. So peanut

Posted by kahhoeng > 2024-03-02 13:36 | Report Abuse

pray ungu well bringing good news soon...

Posted by ZoeZoe > 2024-03-04 10:20 | Report Abuse

wow hibiscus is holding strong! probably all projected in!

Posted by witan > 2024-03-04 15:43 | Report Abuse

WTI $80 and hibiscus is still rm2.55 what is wrong lol

Posted by Six6thsense > 2024-03-05 10:19 | Report Abuse

No worry. Its exponential formula with $80

Posted by Six6thsense > 2024-03-05 11:04 | Report Abuse

Drop more pls to wash out more volume

Posted by Sangranghaeyo > 2024-03-05 12:27 | Report Abuse

Massive foreign sell recently... I think got chance to grab it below Rm2.50

Posted by Apple4Oranges > 2024-03-05 16:56 | Report Abuse

Then we will see the company buy back the shares again, ha

Posted by ZoeZoe > 2024-03-06 09:18 | Report Abuse

how will this 27 million write off effect the overall performance? nothing much has been said about it! will it reflect on the next few QR? after all Hibiscus will need to absorb the cost !

Posted by kahhoeng > 2024-03-07 16:05 | Report Abuse

I think there's more to cost of drilling but the asset which is the oilfield bought but not producing oil or gas. The management has failed to disclose sufficient for all shareholders that are clueless to this business. There have been selling before the announcement, I supposed some in the know are already benefiting from this, whether to buy back at lower price or to sell in advance.

Posted by Sangranghaeyo > 2024-03-07 19:49 | Report Abuse

Let's see if it will continue dropping tmr or not, then try to pick up some. Hehe

Posted by Sangranghaeyo > 2024-03-08 12:17 | Report Abuse

u r right, Apple4Oranges. The company buys back shares again 😆

https://klse.i3investor.com/web/insider/company/detail/I_77446_2539370998

Posted by witan > 2024-03-08 13:46 | Report Abuse

This counter is at the mercy of the operator. WTI and Brent is near all time high for this year and yet Hibiscus doesn't reflect that

Posted by Six6thsense > 2024-03-08 14:20 | Report Abuse

Wait till flower also wilt. See who last longer

Posted by Six6thsense > 2024-03-08 15:30 | Report Abuse

What a good stress test

Posted by ZoeZoe > 2024-03-08 17:04 | Report Abuse

basically Hibiscus is building a base at 2.48-2.50...... so if you can get anything below 2.50, you will be able to make money during the CRUDE upcycle, otherwise if you are holding 2.70 better average down!

Posted by Income > 2024-03-09 17:55 | Report Abuse

I humbly tell you… How to make money fast…
1. Become a rideshare driver. ...
2. Make deliveries. ...
3. Help others with simple, everyday tasks....
4. Pet sit. ...
5. Sell clothes and accessories online....

Posted by Apple4Oranges > 2024-03-11 10:50 | Report Abuse

See how many bullets Hibiscus has left to do the share buyback again 😁

Posted by ZoeZoe > 2024-03-12 14:59 | Report Abuse

But Crude has been holding above 80usd, in case of ceasefire in GAZA, the price falls to 72-75, Hibiscus may drop to 2.41 level, so hold on to your bullets! I wonder what is everyone's average!

Posted by Six6thsense > 2024-03-12 15:41 | Report Abuse

Higher frequency and amplitude stroke now. Bullet accumulated

Posted by Apple4Oranges > 2024-03-12 16:47 | Report Abuse

Bought around 95 cents before it did the share consolidation. I guess my average price now is RM2.37 ..

Posted by Apple4Oranges > 2024-03-14 12:15 | Report Abuse

Oil prices jump after Ukraine strikes Russian oil refineries

https://www.cnbc.com/2024/03/13/oil-prices-rise-as-us-inventories-fall-ukraine-strikes-russian-refineries.html

Posted by NinjaInPyjamas > 2024-03-14 12:51 | Report Abuse

Ignore price, as no one can control. Focus on production delivery and expansion. Looks like higher interest rate for longer maybe able to trigger a mild recession will be good for less exploration ie supply.

Posted by witan > 2024-03-15 14:57 | Report Abuse

Oil is near 4 months high and US oil stocks share price is also at 4 months high. Yet Hibiscus didnt move. Really disappointed with this stock

Posted by kahhoeng > 2024-03-15 16:00 | Report Abuse

yeah, real garbage co...

Posted by witan > 2024-03-15 16:54 | Report Abuse

Closing down at 2.5 when Brent is at $84+. What a joke!!

Posted by Apple4Oranges > 2024-03-15 18:32 | Report Abuse

Later the company will do share buyback again 😆😆

Posted by Nepo > 2024-03-19 05:33 | Report Abuse

It is time for this giant to wait up

Posted by witan > 2024-03-19 11:20 | Report Abuse

LOL Brent is $86 highest since Nov 2023 and yet Hibiscus is in -ve territory today. Bravo!!

Posted by kahhoeng > 2024-03-19 11:55 | Report Abuse

Joker bursa or joker counter???

Posted by pang72 > 2024-03-19 22:29 | Report Abuse

Oil turns bullish liao

Posted by EngineeringProfit > 2024-03-19 22:54 | Report Abuse

Ok, buy 2molo

Posted by Apple4Oranges > 2024-03-19 23:26 | Report Abuse

Better buy it during its weak moment, not bullish moment. Just my opinion

Posted by Six6thsense > 2024-03-20 10:16 | Report Abuse

Peaceful world soon and no need to prepare for the war.

Posted by Apple4Oranges > 2024-03-21 23:32 | Report Abuse

Hard to say ... https://www.aljazeera.com/news/liveblog/2024/3/21/israels-war-on-gaza-live-more-than-100-palestinians-killed-in-24-hours

Posted by wattsy > 2024-03-30 22:04 | Report Abuse

Do we think Hibby price will explode? interested to hear thoughts.. they have a lot of cash, share buy back is progressing, good fundamentals, but they don’t seem to be loved.. another year and they’ll almost have more cash in the bank that they’re worth.. so things gotta change, or so I think.. thoughts/insights welcome ??

Posted by twynstar > 2024-03-31 15:48 | Report Abuse

Hibiscus last closing price = RM2.59 ( =RM 1.04 before share consolidation).
Market cap = RM 2085m
Conversion of USD to MRY = RM 4.70
TTM = Trailing Twelve Months

1) Net Profit ( TTM) = RM 71m + RM 123m + RM 154m + RM 102m = RM 450m
2) EBITDA (TTM) = RM 292m + RM 326m + RM 393m + RM 325m = RM 1336m
3) restricted cash = RM 235m
4) Unrestricted cash = RM 892m
5) Total cash = RM 235m + RM 892m = RM 1127m
6) Total debt = RM 406m
7) Net Assets per share = RM 3.56
8) Enterprise Value (EV) = Market Cap + Total debt - Unrestricted cash = RM 2085m + RM 406m - RM 892m = RM 1599m
9) Net 2P reserves (2P) = 60.9MMboe
10) Net cash generated from operating activities ( 1H,FY2024) =RM 559m
11) Estimated Net cash generated from operating activities (FY2024) =RM 559m x 2 = RM 1118m
12) Estimated Capital Expenditures ( FY2024) = USD 202m x 4.70 = RM 949.4m
13) Estimated Capital Expenditures ( FY2025) = USD 207m x 4.70 = RM 972.9m


Valuation :
1) PER (TTM) = 2085m/450m = 4.63
2) PBR = RM 2.59 / RM 3.56 = 0.73
3) EV / EBITDA ( TTM) = RM 1599 / RM 1336m = 1.20
4) EV / 2P = 5.88 ( peer median = 6.90) **as of 12 March 2024
5) Market cap / Estimated Net cash generated from operating activities (FY2024) = RM 2085 / RM 1118m = 1.865
6) Growing Dividend : 3.75sen ( FY2021), 5.00sen ( FY2022), 6.25sen ( FY2023), 7.50sen ( FY2024F)
7) Total share buy back = 6385200 ( 0.79% of total issued shares)
8 ) Future growth : Extension of PM3 CAA license (CY2024), Teal West Project(CY2025), Fyne Project ( CY2026), Marigold Project (CY2028) , acquisition another high quality producing asset ( ? CY2026)
9) High quality and reliable management teams
10) Wide economic moat company : Almost impossible to get borrowing from banks or raise funds from the public to set up a pure E&P oil & gas company in Malaysia due to ESG issues.


Conclusion :Hibiscus is an extremely undervalued and high quality company in KLSE. Very difficult to find a growing company with low PER, low PBR, extremely low EV/EBITDA and strong cash flow. But share price might not explode due to high CAPEX in FY2024 and FY2025.


I started INVEST hibiscus since 2020

In May 2020, first bought at range of RM 0.500-0.615, but sold all shares in 23/11/2020 with RM 0.550. ( VERY REGRET NOW)

In July and August 2021, accumulated at range of RM 0.605-0.665, no chances to buy at this price already.

In August and October 2022, accumulated at range of RM 0.815-0.825, no chances to buy at this price already.

In June 2023, accumulated at range of RM 0.895-0.905, no chances to buy at this price already. ( HOPEFULLY STILL GOT CHANCE TO BUY AT THIS RANGE)

As a long term investor, I am very happy to growth my wealth with hibiscus. I just target compound growth of 10-12% per year (included dividend). This is my strategy:

Step 1: Save money every month

Step 2: buy low and dont chase high. Hibiscus is cyclical stock. Mr Market sure will give us one or two chances every year to accumulate hibiscus.

Step 3 : Be discipline and repeat Step 1 and Step 2

Posted by kahhoeng > 2024-04-01 15:45 | Report Abuse

hibiscus drops on a rising Brent?

Posted by wattsy > 2024-04-01 18:48 | Report Abuse

Thanks Twynstar, nicely put. What’s also clear is that the ongoing capex is being easily covered each quarter still with great PAT and we should start to see increasing output/ increased revenues as they are realised. They’re aiming to get to 35-50k barrels a day over the next few years with even better profit margins. Will be an interesting few years ahead. Have been accumulating also but not quite as cheap as you managed (low 90s) and will continue to hold and accumulate more when the opportunity arises. Will be interesting what they do with the shares bought back.. nice to see them distribute back to shareholders rather than remove from circulation…

Posted by wattsy > 2024-04-01 18:52 | Report Abuse

Noticed a few times of late that after the bell at 4.45pm there’s a diminishing of the stock price with late sales. It’s like most of the buy calls a removed but there’s some dodgy low value trades a few cents lower which seem to manipulate the price for the day.. most of the day it’s 2.59-60 and then a few low value trades at 2.56 after 4.45….???!