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Hibiscus tumbles into the red

PERFORMANCE AFTER sliding into the red in the final quarter of Hibiscus noted that its fourth-quarter finan-
financial year 2019-2020, Malaysia-listed inde- cial performance had been adversely impacted
pendent Hibiscus Petroleum has accelerated its by a MYR196.3mn ($47mn) write-down on its
plans to acquire distressed upstream assets. oil and gas assets – the bulk of which was tied to
The company posted a net loss of its interests offshore Australia.
MYR145.2mn ($34.8mn) for the April-June Hibiscus recognised a MYR183.5mn
quarter, compared with a MYR24.7mn ($5.9mn) ($44mn) impairment relating to its Bass Strait
net profit in the same quarter of 2019. The Cluster, which includes a 100% interest in the
Malaysia and UK-focused independent also VIC/L31 production licence, a 75.1% stake in the
posted a MYR28.5mn ($6.8mn) net profit in the VIC/P57 exploration permit and a 50% interest
January-March quarter. in VIC/P74.
Hibiscus’ revenue amounted to It said: “Given the group’s focus on Malaysia
MYR39.5mn ($9.5mn), down 83.34% from and the UK, we have deferred our development
MYR237.1mn ($56.8mn) in the same quarter plans for our Bass Strait Cluster. As a result, we
of last year and also down 77.54% from the have recognised provisions for impairment in
MYR175.86mn ($42.1mn) recorded in the licences within this cluster (specifically VIC/
preceding quarter. L31 and VIC/P57) amounting to MYR183.5mn
The poor quarterly performance dragged in the [fourth] quarter.”
annual earnings into the red, with Hibiscus While the company has flagged up that it is
Hibiscus has posting a MYR49.25mn ($11.8mn) net loss working on optimising its unit production costs
deferred two for the 12-month period. The company for the North Sabah and Anasuria assets, it is also
recorded a MYR230mn ($55.1mn) net looking to expand its asset portfolio.
crude offtakes profit in the previous financial year. Rev- Acquisition ambition
enue for 2019-2020 fell by 34.58% year on
planned for the year to MYR646.5mn ($154.9mn) from The group said on August 24 that its asset

final quarter of MYR988.3mn ($236.9mn). acquisition plans had been accelerated “as the
The company said it had met its annual pro-
outlook for the oil and gas market improves”.
It added: “As established exploration and
2019-2020 to the duction target of 3.2mn barrels of crude oil, production players, especially those in Europe,
selling 2.6mn barrels from its North Sabah pro-
July-September duction-sharing contract (PSC) in Malaysia and assess their portfolios in light of an increasing
focus on the renewable energy space, Hibiscus
its UK subsidiary Anasuria Hibiscus.
quarter Hibiscus has deferred two crude offtakes Petroleum sees acquisition opportunities for
planned for the final quarter of 2019-2020 to the good-value and high-quality producing assets.”
July-September quarter “in an attempt to realise It added that its priority would lie with assets
higher crude oil prices”. with strong production potential as well as cost
It added: “As a forward step for the remain- optimisation opportunities. Hibiscus added that
ing period of the calendar year 2020, the group it remained committed to growing its business in
has locked in future sales of 750,000 barrels at an its areas of geographic focus, particularly South-
average price of $35 per barrel at North Sabah.” east Asia.™

P8 www. NEWSBASE .com Week 34 27•August•2020