The company's revenue also fell sharply by 36.1% year-on-year to RM477.4mil.
PETALING JAYA: Hibiscus Petroleum Bhd
’s net profit slumped 51% year-on-year (y-o-y) in the first quarter ended Sept 30, 2024 of financial year 2025 (1Q25), which the upstream oil and gas player called the “most challenging quarter” of financial year 2025 (FY25).
Planned shutdowns at four of its oil field assets, lower oil and gas prices and a stronger ringgit dragged down Hibiscus’ first-quarter net profit to RM75.6mil from RM154.3mil in the previous corresponding quarter. This brought down earnings per share to 9.54 sen.
Revenue also fell sharply by 36.1% y-o-y to RM477.4mil.
In 1Q25, Hibiscus said the planned shutdowns in four assets – PM3 CAA, Kinabalu, North Sabah and Anasuria – resulted in production of an average 16,707 barrels of oil equivalent (boe) per day.
“Production is since back online, hitting an average of 27,300 boe per day in October 2024 (including Brunei).
“We sold 1.7 million barrels of oil equivalent (MMboe) in 1Q25 comprising one million barrels of oil and condensate and 0.7 MMboe of gas.
“Looking forward, from a production perspective (including Brunei), we expect to sell a total of approximately 2.6 MMboe in 2Q25 and 2.5 MMboe in 3Q25 from our producing assets, with a total of 8.6 to 8.9 MMboe expected to be sold over the course of FY25,” the group said in a statement.
Hibiscus noted that its PM3 CAA asset recorded a higher average operating expenditure (opex) per boe compared to the preceding quarter ended June 30, 2024.
This was due to an annual major maintenance campaign and lower production.
“Average gross gas export in 1Q25 decreased by 18% due to an annual major maintenance campaign and low gas demand from buyers.”
As for the Kinabalu asset, average opex per barrel in 1Q25 was lower mainly due to lower production cost, partially compensated by lower production.
It also saw lower production due to continuation of the annual major maintenance campaign which took place from June 26 to July 5, 2024 and the delayed startup of the high-pressure compressor.
No offtake was achieved in the first quarter.
Hibiscus said the North Sabah asset witnessed a higher average opex per barrel in 1Q25, mainly due to lower production with production costs similar to the preceding quarter.
Two offtakes of 613,133 barrels of oil took place in 1Q25.
Meanwhile, the Anasuria asset in the United Kingdom saw its production and opex per boe affected in 1Q25.
This was following the planned offshore turnaround of the Anasuria floating production storage and offloading unit which took place from Aug 3 to Sept 10, 2024; detection of a leak from the head flange of gas scrubber; and oil contamination in the gas system which commenced from Sept 24, 2024.
The gas system returned to service on Oct 25, 2024.
One offtake of 102,987 barrels of oil was achieved in 1Q25.
Looking ahead, with Hibiscus now being the operator of the Block B MLJ field in Brunei following the acquisition of TotalEnergies EP (Brunei) B.V., the group expects positive effect on its financials and operations from 2Q25 onwards.
“A first interim single-tier dividend for FY25 of two sen was declared on Nov 19, 2024.
“Subject to oil prices remaining at or above US$70 per barrel, the group targets to declare a minimum total dividend of eight sen per ordinary share.
“Should oil prices be above US$80 per barrel, the total dividend rises to 10 sen per ordinary share,” it added.
