Hibiscus Petroleum's Q1 profit rises more than three-fold
KUALA LUMPUR: Hibiscus Petroleum Bhd's net profit surged more than three-fold to RM135.26 million for the first quarter ended Sept 30, 2022 (QI FY2023) from RM4L52 million a year ago, driven mainly by relatively high oil, condensate and gas prices.
Its revenue also jumped to RM604.77 million in the quarter from RM246.69 million previously, it said in a filing with Bursa Malaysia yesterday.
The oil and gas (O&G) exploration and production group said its operations sold a million barrels of oil and condensate and over 510,000 barrels of oil equivalent (boe) of gas in Q1 FY2023.
"The sale of oil and condensate contributed RMso2.1 million to total revenue while contribution from the sale of gas was RMIOLS million.
"The relatively strong oil and gas price levels have contributed positively to the profitability levels in all of the group's producing assets in Malaysia and the United Kingdom (UK)," it said in a press statement.
On prospects, Hibiscus Petroleum said the group was well-positioned to build on its successful operational track record in its producing assets in both countries.
"In summary, we remain focused on delivering optimal performance in a strong oil price environment," it said.
The group said it remained on target to sell about 7.2 million to 7.5 million boe of oil, condensate, and gas for the financial year ending June 30, 2023.
Managing director Dr Kenneth Pereira said the group believed that the current macro trends driving high energy prices and a strong performing US dollar would continue.
"While a reduction in global emission levels is extremely important. we have also observed that the narrative emerging from the recent 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) event held in Egypt recognises that oil and gas, in particular gas, has an important role to play in the energy transition.
"In the UK, there have been certain changes announced recently by the government in respect of overall taxation levels, including those applicable to the O&G exploration and production sector. It should be noted that while the energy profit levy is being increased, corresponding investment incentives are concurrently being offered in conjunction with the increase and it is thus our intention to phase our capital expenditure plans to optimise value from the incentives," he said. Pereira said that by doing so, the impact from the tax increases would be minimised and its UK Continental Shelf (UKCS) growth strategy could progress.albeit cautiously.
"It is also clear that decarbonisation mltlatives within the UK O&G sector have been incentivised and this will encourage us to identify further opportunities that will reduce our UKCS carbon footprint.
"Overall, we believe that for Hibiscus Petroleum Group, the net effect of these tax hikes will not be material and we have a positive outlook for our sector," he added.- Bernama