Hibiscus Petroleum builds momentum heading into 2H26 after strong quarter


Hibiscus Petroleum managing director Datuk Kenneth Pereira

PETALING JAYA: Hibiscus Petroleum Bhd noted higher sales and production volumes, as well as operational efficiency helped offset lower average realised oil, condensate and gas prices in its second quarter ended Dec 31, 2025 (2QFY26).

The oil company reported a net profit of RM70.3mil on the back of RM544.5mil in revenue and an average realised oil and condensate price of US$68.7 per barrel in the quarter.

Earnings before interest, taxes, depreciation and amortisation rose 26% q-o-q to RM243.9mil.

It declared a second interim single-tier dividend of 2 sen per share, bringing total first half FY26 (1HFY26) dividends declared to-date to 4 sen per share.

Hibiscus is targeting a minimum total dividend of 8 sen per share for FY26, if average oil prices remain between US$65 and US$75 a barrel and 10 sen share dividend if oil prices exceed US$75.

Hibiscus sold 2.5 million barrels of oil equivalent (MMboe) of oil, condensate, and gas during the quarter, a 32% increase q-o-q as operations stabilised after completing major planned maintenance activities in 1QFY26 for the PM3 CAA production sharing contract (PSC) and Block B Maharajalela Jamalulalam in Brunei. It is well-positioned for a stronger 2HFY26.

This has led to a 10% increase in production to 26,108 boe/day with sales remaining on track to attain the targeted range of 9 MMboe to 9.4 MMboe for FY26, reflecting strong production momentum, the company said in a release.

"We successfully completed the drilling phase of the Teal West Development in January 2026 and remain on target to achieve first oil in mid-2026. We also received recognition from PETRONAS for our North Sabah and Kinabalu production campaigns, were awarded the Prime Minister’s Hibiscus Award for environmental excellence at the Labuan Crude Oil Terminal and commenced our 12MWp solar PV project in Brunei.

"Discussions with reputable investors to explore a potential long term strategic investment are ongoing. The entry of such investor(s) would provide a strong foundation for Hibiscus to achieve its 2030 mission enabled through access to capital and/or assets," its managing director Datuk Dr Kenneth Pereira said.

Pareto Securities has been appointed as financial adviser to assist in the evaluation of proposals received, he added.

Hibiscus commenced construction of its 12 MWp solar photovoltaic project in Brunei on Feb 9, 2026, with first power supply scheduled for January next year.

Hibiscus remains in a strong cash position of RM786.3mil. The company now has operations in Malaysia, Vietnam, Brunei, countries in Asia Pacific and the United Kingdom.

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Hibiscus Petroleum , dividend , PETRONAS , solar PV

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