“Two more oil production wells are currently being drilled at St Joseph oil field, which will be followed by three new oil production wells and one water injection well in the SF30 oil field,” the oil and gas group said
KUALA LUMPUR: PublicInvest research is positive on Hibiscus Petroleum Bhd
's long-term earnings outlook as it continues to increase production levels while oil prices at above US$60 a barrel provides further upside to the group's earnings.
"Our Outperform call is affirmed, with an unchanged TP of RM1.73 based on our DCF valuations," it said.
In a results announcement yesterday, Hibiscus said 1HFY19 revenue was over 100% higher year-on-year to RM525.1mil, due mainly to contribution from its North Sabah asset contribution.
Core net profit rose to RM148.7mil versus RM33.2mil in the previous corresponding period.
"1HFY19 core net profit numbers were in line with our full-year estimates, meeting 48.2% but fell short of consensus at 41.2%," it said.
PublicInvest said higher production efficiency from the Anasuria Cluster asset with an average uptime of 91% versus 63% in 1HFY18 helped to support the performance.
The asset also achieved its highest production rate since its acquisition in March 2016 due to contribution from the GUA-P2 side track well, which commenced in September 2018.
"About 797,914 bbls of crude oil were sold in 3 cargoes in 1HFY19 at an average realized oil price of USD68.45/bbl. For the 2QFY19 itself, 274,015 bbls of crude oil were sold at USD58.08/bbl.
"The asset achieved average uptime of 94% in 2Q and average daily oil equivalent production rate of 4,416 boe/day," it said.
The North Sabah asset recorded a stable contribution with an EBITDA Of RM138.4mil on the back of RM280.1mil revenue.
"The asset sold 888,910 bbls of crude oil in 3 cargoes including 293,624 in 2QFY19, at an average realised oil price of USD76.15/bbl.
"OPEX for 2QFY19 amounted to USD22.74/bbl was higher mainly due to planned maintenance activities performed at the offshore platforms during the quarter.
"Average OPEX for 1HFY19 is relatively stable at USD16.65/bbl."
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