Hibiscus Petroleum Bhd co-founder and managing director Dr Kenneth Gerard Pereira
PETALING JAYA: Hibiscus Petroleum Bhd
has upgraded its sales volume guidance for its financial year 2026 (FY26) to 9-9.4 million barrels of oil equivalent (MMboe) despite earnings for the first quarter of financial year 2026 (1QFY26) coming in lower on-year due to planned maintenance at its upstream operations.
The oil and gas company posted a 9% year-on-year (y-o-y) drop in revenue to RM433mil for the 1QFY26, while earnings fell 73% to RM20mil or earnings per share (EPS) of 2.73 sen in the quarter.
The drop in revenue and earnings was due to its PM3 CAA, Kinabalu and Brunei Darussalam assets experiencing a planned shutdown of production facilities to allow for major maintenance works.
In a filing with Bursa Malaysia, Hibiscus also noted it is in separate discussions with three reputable independent parties, which include two oil companies, to explore a potential long term strategic investment in Hibiscus.
The discussions are part of Hibiscus’ plan to build a robust energy portfolio whilst strengthening its shareholding structure.
“The investment structures being contemplated include a combination of new Hibiscus shares and convertibles in exchange for the injection of predominantly oil and gas producing assets and cash,” the filing noted.
1QFY26 saw its Sabah upstream operations accounting for the bulk of earnings at RM44mil, up 82% y-o-y, despite revenue falling 33% y-o-y to RM191mil in the quarter. Its operations in Brunei and the UK were also profitable.
Hibiscus sold a total of 1.9 MMboe of oil, condensate and gas, with production averaging 23,656 boe/day. at an average realised oil and condensate price of US$73.6 per barrel.
Hibiscus reported earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM190.9mil for the quarter. The company is upbeat about its prospects.
"Having reviewed our operational performance to date, we upgraded our FY26 sales volume target of 8.8 – 9.3 MMboe to 9.0 – 9.4 MMboe. We remain steadfast in pursuing our 2030 Mission and in our commitment to delivering long-term value for our shareholders," its managing director Dr Kenneth Pereira said.
Hibiscus declared a first interim single-tier dividend for FY26 of two sen per share. It aims to declare a minimum total dividend of 8-10 sen per share, subject to crude oil prices being at US$65-75 a barrel.
The company added it had commenced drilling a well in the Teal West field in September and the drilling programme is expected to be completed in December.
Preliminary subsurface data from the well indicate that Teal West’s proven and probable oil and gas reserves are expected to exceed the initial estimate of 3.4 MMboe. First oil from the Teal West field is expected in mid-2026, it added.
