This article first appeared in The Edge Financial Daily, on June 1, 2016.
KUALA LUMPUR: Hibiscus Petroleum Bhd, which posted a net profit of RM80.51 million in the third quarter ended March 31, 2016 (3QFY16), said it is eyeing more cash-generating assets in Australia, Malaysia and the North Sea after it has completed the acquisition of Anasuria Cluster.
Speaking at a media briefing yesterday, Hibiscus managing director Dr Kenneth Pereira said the company is always looking for acquisition opportunities. “Maybe something closer to this part of the world. It is too early to say anything other than this,” he added.
“Our core areas in this part of the world, Australia would be one. Malaysia, [and the UK] North Sea would be another area,” he explained.
Hibiscus posted a net profit of RM80.51 million in 3QFY16, which Pereira described as the company’s first material profit, compared to a net loss of RM11.04 million a year ago.
He attributed the profit to a fair value gain of RM135.3 million, after the completion of the acquisition of a 50% stake in the Anasuria Cluster in March.
The gain was generated as a result of the difference between the net assets of the Anasuria Cluster at fair value versus the purchase consideration for the acquisition.
Also, Anasuria Cluster contributed RM30.2 million and RM6.4 million to revenue and gross profit respectively, according to notes accompanying its financial results.
Quarterly revenue ballooned to RM31.78 million from RM1.72 million.
For the nine-month period ended March 31, 2016, Hibiscus posted a net loss of RM78.91 million, from a net profit of RM30.98 million. Revenue, however, jumped to RM32.98 million from RM6.27 million.
Meanwhile, Pereira said the company is in the midst of getting a third-party consultant to verify if the capital expenditure related to both the proved developed producing and proven and probable reserves in Anasuria Cluster can be significantly reduced.
Since taking over the operatorship of Anasuria Cluster, the company has been able to monitor actual production and field performance statistics, and compare the projections against the projection by RPS Energy Consultants Ltd, which addressed the valuation of Anasuria Cluster earlier.
HIBISCS (5199) - Hibiscus eyeing more acquisitions