KUALA LUMPUR, May 19 — Hibiscus Petroleum Bhd’s net profit was nearly halved to RM28.47 million in the third quarter (Q3) ended March 31, 2020, from RM55.18 million a year earlier.
Revenue eased to RM175.86 million from RM226.12 million previously, it said in a filing with Bursa Malaysia today.
For its North Sabah asset, the group was hit with a low average realised oil price of US$47.72 per barrel during the quarter (Q3 FY19: US$67.87 per barrel) despite achieving the highest average daily net oil production (6,436 barrels per day) in more than a year.
For its Anasuria asset in the United Kingdom, it achieved an average net oil production rate of 2,802 barrels per day with an average realised oil price of US$50.59 per barrel, compared with 2,504 barrels per day a year earlier with an average realised price of US$60.39 per barrel.
The company, which continued to operate during the Movement Control Order period, said during the quarter under review, the North Sabah segment’s profit before tax (PBT) was RM52.2 million after deducting the following non-cash items from earnings before interest, taxes, depreciation, and amortisation (EBITDA) — amortisation of intangible assets and depreciation of oil and gas assets of RM45.9 million; and unwinding of discount on provision for decommissioning costs of RM11.5 million.
Meanwhile, Anasuria Hibiscus segment’s PBT stood at RM19.3 million after deducting the following non-cash items from EBITDA — amortisation of intangible assets and depreciation of oil and gas assets of RM17.3 million; and unwinding of discount on provision for decommissioning costs of RM4.0 million.
“The segment recorded a net tax charge in the current quarter amounting to RM2.9 million, or 15.2 per cent over PBT,” it said.
On prospects, Hibiscus Petroleum said it had activated its asset action plans to mitigate the effects of low oil prices over calendar year 2020 (CY20) period.
“Both teams in the North Sabah and Anasuria assets are targeting a reduction in unit production costs for CY20 through the deferral of non-critical operating expenditure activities and prudent management of general and administrative expenses,” it said.
Hibiscus Petroleum’s production target for the current financial year ending June 30, 2020, remains at 3.2 million barrels of oil. — Bernama