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KUALA LUMPUR (Aug 24): Hibiscus Petroleum Bhd slipped into a net loss of RM145.20 million for the fourth quarter ended June 30 (4QFY20), mainly due to the provisions for impairment of oil and gas (O&G) assets amounting to RM196.3 million incurred for the current quarter.

Losses per share amounted to 9.14 sen, compared with earnings per share (EPS) of 1.56 sen, a bourse filing showed.

On a quarter-to-quarter comparison, the company recorded a net profit of RM28.47 million in 3QFY20 and EPS stood at 1.79 sen. Meanwhile, revenue was 77.54% lower against RM175.86 million in the preceding quarter.

The upstream O&G producer posted a net profit of RM24.72 million in the corresponding quarter a year ago, while its quarterly revenue slumped 83.34% to RM39.50 million, versus RM237.07 million a year ago.

Following the loss-making 4QFY20, the group posted a net loss of RM49.25 million for the 12 months ended June 30, against a net profit of RM230.01 million for FY19. Revenue for FY20 sank 34.58% to RM646.50 million from RM988.30 million for FY19.

The last time the group posted an annual net loss was in FY16, when it recorded a cumulative net loss of RM59.96 million on annual revenue of RM83.56 million.

In a separate filing, its managing director Dr Kenneth Pereira said: “The group has previously reiterated that it is positioning itself to acquire good-value, high-quality producing assets in our areas of geographic focus. With asset values dampened due to the current oil market, we see this period as an opportunity to add to our portfolio of producing assets.”

He added that the group is working towards optimising its unit production costs for its North Sabah and Anasuria assets, in order to maintain a greater headroom between cost base and crude oil prices.

The average unit production cost achieved by the Anasuria and North Sabah assets in the current quarter were below the respective thresholds of US$18.50 per barrels of oil equivalent (boe) and US$15 per barrel (bbl) respectively.

In FY2020, the group met its full-year production target of 3.2 million barrels (MMbbls) of crude oil, while it sold 2.6 MMbbls across the North Sabah and Anasuria assets.

It added that it had deferred two crude oil offtakes initially planned for the current quarter to the next quarter ending Sept 30, 2020 (1QFY21) in an attempt to realise higher crude oil prices.

“As a forward step for the remaining period of the calendar year 2020, the group has locked in future sales of 750,000 bbls at an average price of US$35 per bbl at North Sabah,” it added.

Hibiscus closed up 0.5 sen or 0.83% at 60.5 sen, valuing it at RM960.88 million. Some 45.45 million shares were done. Year-to-date, the group has fallen some 36% from 94 sen on Dec 31, 2019.

Edited by Lam Jian Wyn

http://www.theedgemarkets.com/article/hibiscus-slips-red-4q-impairment-provision-og-assets
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