PR-Inside.com: 2017-08-28 12:42:29
KUALA LUMPUR, Aug 28, 2017 - (ACN Newswire) - Hibiscus Petroleum Berhad ("Hibiscus Petroleum", the "Company" or "Group") today announced results for the Fourth Quarter ended 30 June 2017 (4Q17). The Group reported net profit after tax of RM106.1M for the 12 Months ended 30 June 2017 (FY2017), a positive swing of RM166.1M from a loss of RM60.0M in the preceding year ended 30 June 2016 (FY2016), driven by improved revenue and efficiencies from the Anasuria Cluster oil and gas fields in the North Sea off the United Kingdom.
Malaysia's first listed independent oil and gas exploration and production company said the net profit growth was achieved following a higher average daily oil production rate, rising by approximately 8.0% year on year, with average operating costs per barrel of oil equivalent (OPEX/boe) dropping more than 35.0% over the same period.
Hibiscus Petroleum has now recorded six consecutive quarters of profitability since it began operating the Anasuria Cluster after acquiring a 50% stake on 10 March 2016. The Group's first producing asset comprises four producing oil fields.
Group revenue for FY2017 increased 219.8% to RM261.3 million from RM81.7 million a year ago due to higher production volume and a higher average selling price being realised. For 4Q17, the Anasuria Cluster achieved an average daily oil production rate of 3,204 barrels per day (bbl/day) (4Q16: 2,971 bbl/day) which was sold at an average realised price of US$50.46 per barrel (bbl) (4Q16: US$40.14 per bbl).
Cost of sales increased 128.1%, at a slower pace than the rise in revenue, to RM93.1 million in FY2017 from RM40.8 million in FY2016. This is due to improved production efficiencies which lowered the OPEX/boe to US$13.98 in 4Q17 from US$23.13 in 4Q16.
Hibiscus Petroleum's gross profit also increased by RM127.3 million, or 311.3%, to RM168.2 million in FY2017 from RM40.9 million in FY2016. Gross profit margin improved to 64.4% from 50.1% over the comparative periods.
The Group reported earnings before interest, tax, depreciation and amortisation (EBITDA) of RM156.5 million for FY2017, reversing a loss before interest, tax, depreciation and amortisation (LBITDA) of RM17.2 million in FY2016.
Earnings per share on a fully diluted basis amounted to 7.51 sen in FY2017 compared to a loss per share of 5.66 sen in FY2016, while net assets per share stood at RM0.51 as at 30 June 2017 compared to RM0.45 as at 30 June 2016.
Cash and bank balances rose 89.6% to RM54.5 million as of 30 June 2017 from RM28.7 million a year ago. This increase is mainly due to positive operating cash flows and net proceeds from issuance of shares during the financial year under review. The increase was partially offset by a payment of RM71.4 million which was related to the acquisition of the Anasuria Cluster.
On 29 May 2017, the Group received approval from PETRONAS for its indirect subsidiary SEA Hibiscus Sdn Bhd to acquire a 50% stake in the 2011 North Sabah EOR PSC for US$25 million, subject to certain conditions. The Group expects that with the acquisition of the 2011 North Sabah EOR PSC stake, it would be able to extend its core capabilities and processes to a second producing asset and reap the resultant economies of scale.
On the outlook, Dr Kenneth Pereira, Managing Director of Hibiscus Petroleum, commented: "Going forward, the Company will investigate the potential of sub-surface interventions to exploit discovered resources at the Anasuria Cluster to enhance production rates, possibly commencing second half of FY2018. In this regard, several opportunities have been identified and are being aggressively evaluated. This approach is expected to keep OPEX/boe in check and provide an improved buffer, should oil prices deteriorate in the future. Barring unforeseen circumstances and assuming oil prices remain relatively stable at current levels, the Group expects its Anasuria-related operations to remain profitable."
As part of the Company's efforts to keep stakeholders engaged with the activities of the Company and informed of its quarterly performance, Hibiscus Petroleum will release a webcast presenting highlights of its Fourth Quarter Results. The webcast will be released on the Company website at 8.00 p.m. on 28 August 2017.
About Hibiscus Petroleum Berhad
Hibiscus Petroleum Berhad (HIBISCS:5199) is Malaysia's first listed independent exploration and production company. It was listed on the Main Market of Bursa Malaysia Securities Berhad in July 2011. Hibiscus Petroleum is focused on the exploration, development and production of oil and gas fields in Europe, Australia, Middle East, and Southeast Asia region. For more information, please visit our website at www.hibiscuspetroleum.com