PETALING JAYA: Analysts are mostly optimistic on Hibiscus Petroleum Bhd
’s prospects, given its status as one of the key beneficiaries in the current high crude oil price environment with direct exposure to price movements.
Coupled with the expected ramp-up from its UK Teal West oilfield development and recovering offtake momentum across its core assets, the group’s earnings delivery is expected to strengthen further going into the financial year 2027 (FY27).
In a report, Hong Leong Investment Bank (HLIB) Research said Hibiscus is currently benefiting from stronger realised oil prices, with April to May 2026 lifts of about 890,000 barrels.
This represents 75% of estimated fourth quarter of financial year 2026 (4Q26) offtake volumes achieving an average realised oil price of around US$120 per barrel, while the remaining 25% is expected to be lifted in June 2026.
Meanwhile, Teal West remains on track for first oil by mid-2026, with production expected to ramp up to about 7,000 barrels per day by early FY27.
HLIB Research noted: “We estimate that Hibiscus achieved a realised premium of about 9.6% above Brent prices in 3Q26, with management guiding that premiums could further expand to 13% to 18% at Brent prices of US$90 to US$100 per barrel.
“As such, we expect stronger realised prices and improving offtake volumes to support sequential earnings recovery heading into FY27,” the research house added.
It has maintained a “buy” call on Hibiscus with an unchanged target price of RM2.74 per share.
BIMB Research in its note to clients said Hibiscus’ earnings are expected to surge in 4Q26 as management guided that approximately 890,000 barrels of oil sales were realised at around US$120 per barrel, with an additional 300,000 barrels lifting scheduled in June 2026.
“We estimate 4Q26 earnings at around RM130mil. Earnings are expected to improve further in 1Q27, supported by higher sales volume of 2.9 million barrels of oil equivalent following the first oil contribution from the Teal West field,” the research house added.
Meanwhile, Hibiscus management indicated a potential corporate exercise due for announcement by end-FY26.
Following its upward earnings revision, BIMB Research has kept a “buy” call on the stock with a higher target price of RM2.80 from RM2.65 previously.
CGS International Research said it raised Hibiscus’ FY26 to FY28 core earnings per share forecasts based on higher oil and gas selling price assumptions, coupled with higher deferred tax income for FY26.
The research house, which reiterated an “add” call on the stock with a higher target price of RM2.85, said the surge in FY26 to FY27 earnings forecasts could result in a FY27 dividend yield of more than 9%.
