Hibiscus Petroleum Berhad - An Insight Into - March 2022
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
An Insight Into
Hibiscus Petroleum Berhad
March 2022
R1
Disclaimer
The purpose of this presentation is to provide general information about Hibiscus Petroleum Berhad (the “Company”) to assist potential investors in making their own evaluation of
the Company and does not purport to be all-inclusive or to contain all of the information that a prospective investor may desire. It is not the intention to provide, and you may not
rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results
of operations of the Company or its subsidiaries. Unless otherwise stated herein, the information in this presentation is based on the Company's own information and estimates.
Certain statements in the presentation are or may be “forward-looking statements” and represent the Company’s intentions, projections, expectations or beliefs concerning, among
other things, future operating results and various components thereof or the Company’s future economic performance. These forward-looking statements speak, and the
presentation generally speaks, only at the date hereof. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown
risks and uncertainties which may cause the Company’s actual performance and financial results in future periods to differ materially from any express or implied estimates or
projections. No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ
materially from those forecast and projected. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or
implied, is made regarding future performance. Undue reliance should not be placed on the forward-looking statements.
No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. The information
and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be
placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. Except for statutory liability which cannot be excluded, each of the
Company, its directors, its officers, employees and advisers expressly disclaims any responsibility for the accuracy, fairness, sufficiency or completeness of the materials contained in
this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including in negligence) for any loss or damage or consequential loss
howsoever caused or arising which may be suffered directly or indirectly by any person as a consequence of any information in this presentation or any error or omission there from.
All persons should seek appropriate professional advice in reviewing or considering the presentation and all other information with respect to the Company and evaluating the
business, financial performance and operations of the Company. The presentation does not purport to be all-inclusive or to contain all of the information that may be required to
evaluate all of the factors that would be relevant in determining whether to deal in the Company's securities, including but not limited to any person's objectives, financial situation
or needs. Each person should make, and will be taken to have made, its own investigation, assessment and analysis of the information in this presentation and other matters that
may be relevant to it considering whether to deal in the Company's securities. Any strategies mentioned herein may not be suitable for all investors. Investors and prospective
investors are required to make their own independent investigation and appraisal of the business and financial condition of the Company and any tax, legal, accounting and
economic considerations accordingly.
This presentation is not for distribution in, nor does it constitute an offer of securities for sale in, the United States, Canada, Japan, or in any jurisdiction where such distribution or
offer is unlawful. Neither this presentation nor a copy of the presentation can be taken or transmitted into the United States, its territories or possessions, or distributed, directly or
indirectly, in the United States, its territories or possessions or to any US person as defined in Regulation S under the US Securities Act 1933, as amended (the “Securities Act”). Any
failure to comply with this restriction may constitute a violation of United States securities laws. The presentation and any oral statements made in connection with it are not an
offer of securities for sale in the United States. The Company’s shares have not and will not be registered under the Securities Act and may not be offered or sold in the United States
or to or for the account or benefit of US persons (as such terms are defined in Regulation S under the Securities Act) except pursuant to an exemption from such registration. The
distribution of the presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe
any such restrictions. Any failure to comply with these laws or restrictions may constitute a violation of applicable laws.
This presentation speaks as of the date hereof and is subject to change without notice. Neither the delivery of this presentation nor any further discussions of the Company with any
of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.
2 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Content
Part 1: Introduction to Hibiscus Petroleum
Part 2: Acquisition of New Assets from Repsol
Part 3: Malaysia-Vietnam CAA – PM3 CAA PSC
Part 4: Malaysia – 2012 Kinabalu Oil PSC
Part 5: Malaysia – 2011 North Sabah EOR PSC
Part 6: United Kingdom – Anasuria Cluster
Part 7: Vietnam – Block 46 Cai Nuoc PSC
Part 8: United Kingdom – Marigold & Sunflower
Part 9: Australia – Bass Strait Assets
Part 10: Financial Performance
Part 11: Key Messages
Appendix: Additional Information
3 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Part 1
Introduction to Hibiscus
Petroleum Berhad
Malaysian Pure Play E&P Company
4 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Hibiscus Today
Revenue generating and profitable production operations
Company Snapshot
• Listed in 2011 on the Main Market of Bursa Malaysia.
Highlights
• Our goal is to grow our business by enhancing production from mature assets
safely and profitably in regions of our geographic focus. Shares Issued1 2,007,508,817
• Experienced and knowledgeable management team. Shareholders1 ~ 19,000
• Track record in offshore exploration drilling in Oman (discovery) and in the Bass Market Capitalisation1 RM 2,609,761,462
Strait, Australia and production wells in the UK and Malaysia.
Net Assets2 RM 1,553.0m
• Operator of PSCs in Malaysia and Vietnam: 2011 North Sabah EOR PSC, PM3 CAA
PSC, 2012 Kinabalu Oil PSC, Block 46 Cai Nuoc PSC, PM305 PSC, PM314 PSC. Cash2 RM 552.0m
Significant cash and profit generating business.
Debt2 (RM 2.4m)
• Joint operator and owner of the Anasuria Cluster of producing fields in the UK
North Sea, also a significant cash and profit generating business.
• Proceeds raised from Islamic CRPS fund raising exercise of RM203.6m have been
used for the acquisition of assets from Repsol. Remaining CRPS to the value of
RM1,796.4m to expire on 21 March 2022.
• Shariah Compliant. Constituent of the FTSE4Good Bursa Malaysia Index and
FTSE4Good Bursa Malaysia Shariah Index.
RM Million
2,600 Hibiscus Market Capitalisation
2,400 Brent Rebased
2,200
2,000
1,800
1,600
1,400
1,200
1,000
Hibiscus Petroleum was honoured to receive 3 awards, including Best
800
Emerging Petroleum Arrangement Contractor, at the inaugural Malaysia
Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022
Upstream Awards 2020 organised by PETRONAS
5 1As of 3 March 2022 | 2As of 31 December 2021 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Energy Transition Update
Hibiscus’ Climate Ambition Acknowledged by WWF-BCG
November 2021 was a crucial month for the global climate agenda. The much awaited 26th UN Climate Change Conference of
the Parties (COP26) was finally held in Glasgow, UK. At the COP26, WWF-Malaysia and Boston Consulting Group (BCG)
launched a joint report entitled “Securing Our Future: Net Zero Pathways for Malaysia”. In the report, Hibiscus was most
honoured to be cited by WWF-BCG as one of the exemplary seven major Malaysian corporations having progressive
climate ambitions.
Post COP26: Hibiscus Published Climate Change Framework
In addition to our aspiration to be a Net Zero Emissions Producer by 2050, our continuous
efforts to align our climate ambition with the Paris Goal resulted in the publication of our
Climate Change Framework soon after the conclusion of COP26 (25 November 2021).
Our climate policy is premised on the principle of common but differentiated responsibilities,
prescribed within the United Nation Framework Convention on Climate Change. Our Climate
Change Framework covers both Climate Mitigation and Climate Adaptation Strategies. The
objective of climate mitigation is to reduce the cause of climate change whilst the objective of
climate adaptation is to reduce the impact of climate change.
The framework also includes a high-level assessment of climate-related risks and opportunities,
the risks and opportunities are as adopted from the recommendations of the Taskforce on
Climate-related Financial Disclosures (TCFD), the indicative and relevant action plan to progress
forward, and the baseline status of our actions as at end of FY2021.
Moving forward, the Group is responsive to the UN’s call for a Decade of Action, and we shall take progressive actions in a
measured and disciplined manner so as to balance the expectation of our stakeholders in the areas of profitability, our people and
6 our planet.
Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Current Reserves and Resources
• As at 1 January 2022, our reserves and resources are as follows:
100
UK - Teal West
UK - Marigold & Sunflower
73.2
Million Barrels of Oil Equivalent
75
64.0 4.0 Australia - VIC/RL17
0.3
9.6 Vietnam - Block 46 Cai Nuoc
50 8.4
43.6 Malaysia - Kinabalu
22.1 Malaysia-Vietnam CAA - PM3 CAA
25 Malaysia - North Sabah
8.0
13.3 2.9 0.1
23.6 UK - Anasuria
11.7 14.6
1.6
0
2P Oil & Condensate 2P Gas 2C Oil
Reserves Reserves Resources
Notes to 2P Reserves and 2C Resources:
1 Reserves and resources are as of 1 January 2022.
2 Anasuria 2P Reserves are based on Anasuria Hibiscus UK Limited (“Anasuria Hibiscus UK”)’s interest and extracted from RPS Energy Consultants Limited’s report dated August 2021, adjusted for actual production
in the 6 months ended 31 December 2021.
3 North Sabah 2P Reserves and 2C Contingent Resources are based on SEA Hibiscus Sdn Bhd’s current estimated net entitlement, based on RPS Energy Consultants Limited’s report dated August 2021, adjusted for
actual production in the 6 months ended 31 December 2021.
4 PM3 CAA, Kinabalu, Block 46 Cai Nuoc 2P Reserves and 2C Contingent Resources are based on Peninsula Hibiscus Sdn Bhd’s current net entitlement, based on RPS Energy Consultants Limited’s report dated June
2021, adjusted for actual production in 2021.
5 Marigold & Sunflower 2C Contingent Resources are based on Anasuria Hibiscus UK’s interest and extracted from RPS Energy Consultants Limited’s report dated August 2020.
6 Teal West 2C Contingent Resources are based on Anasuria Hibiscus UK’s interest and extracted from RPS Energy Consultants Limited’s report dated August 2021.
7 VIC/RL17 2C Contingent Resources are based on internal estimates.
7 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Leadership Team
Experience with diversity
BOARD OF DIRECTORS
Skills and Experience from a Range of
Industries and Sectors
• Technical, commercial and corporate
experience particularly in the oil and
gas industry
• Finance, accounting and investment
banking/management
• Audit and risk Zainul Rahim bin Dr Kenneth Dato’ Sri Roushan Thomas Michael Taylor Dato’ Dr Zaha Rina
Mohd Zain Gerard Pereira Arumugam Senior Independent Non- binti Zahari
• Business advisory and corporate
Non-Independent Non- Managing Director Independent Non- Executive Director Independent Non-
finance
Executive Chairman Executive Director Executive Director
KEY MANAGEMENT TEAM
Business Builders
• Experience in pioneering oil and gas
and public listed companies.
• Held senior management positions in
other major O&G and public listed
companies.
Proven Success, Experience and Yip Chee Yeong Dr Pascal Hos Mark John Paton Kevin Robinson Chong Chee Seong Joyce Vasudevan Lim Kock Hooi
Chief Financial CEO, Peninsula CEO, Anasuria VP Project Assurance CEO, SEA Hibiscus Head, Corporate Group General
Expertise in the Upstream Business Officer Hibiscus Sdn Bhd Hibiscus UK & Asset Oversight Sdn Bhd Finance Counsel
• Fast track project execution and
effective project management.
• International experience in exploration,
development and production projects
of varied complexity and size.
Corporate and Commercial Competency
• Strategic planning and operations, cost
optimisation, project monitoring. Deepak Thakur Dr Ambrose Dr Chen Wei Nee Syarifah Aliza Nurzalina Lily Ling Leong Indarjit Singh David Jayakumar
• Domestic and cross border corporate VP Economics and Gerard Corray VP New Energy Syed Azauddin Jamaluddin Shuang Geoscience Advisor Richards
exercises, corporate management, Business Planning VP Corporate Ventures VP Corporate COO, SEA Hibiscus SGM Corporate Head of Subsurface,
audit, corporate finance, securities and Services Governance Sdn Bhd Development SEA Hibiscus Sdn Bhd
oil and gas law.
8 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)
Shareholder Base
A public company with strong liquidity and a diversified shareholder base
Number of
71.00 Shares2 % of
Shareholder Profile
Shares
million (million)
Average Daily Trading
Volume RM 1.30 178.66 8.9 Management Team
February 2022 Share Price1
138.90 6.9 Polo Investments Limited
77.33 3.9 Kenanga
2,007,508,817 RM 2.610 76.37 3.8 Principal Asset Management
Total number
of shares in issue1 billion 67.77 3.4 DBS Bank
Market Cap1
62.31 3.1 AIA
Other Institutional &
774.37 38.5
Corporate Shareholders
631.80 31.5 Retail Shareholders
• Diversified shareholder base, with no controlling shareholder
• Most large shareholders are involved in or familiar with the O&G industry
1As of 3 March 2022
2As of 28 February 2022 Hibiscus Petroleum Berhad
9
Registration Number: 200701040290 (798322-P)
Current Portfolio of Assets United Kingdom
Secure and Producing with Development Opportunities Anasuria Cluster
▪ Producing asset
Teal West
▪ Development asset
▪ Joint-operator (except Cook field) ▪ Operator
▪ Partners: Ping Petroleum, Ithaca ▪ Partner: Zennor
Energy Petroleum
▪ Net 2P Oil Reserves: 23.6 MMbbls ▪ 70% stake
▪ Net 2C: 4.0 MMbbls
Marigold & Sunflower Blocks 21/19c & 21/20c
▪ Development asset ▪ Exploration asset
Malaysia ▪ Operator ▪ Partners: Ping Petroleum,
▪ Partner: Caldera Petroleum Ithaca Energy
Kuala Lumpur (HQ) ▪ 87.5% stake ▪ 19.3% stake
▪ Net 2C Oil Resources: 43.6 MMbbls
2011 North Sabah EOR PSC Kildrummy
▪ Producing asset ▪ Development asset
▪ Operator ▪ Operator
▪ Partner: PETRONAS Carigali ▪ 100% stake
▪ 50% participating interest
▪ Net 2P Oil Reserves: 22.1 MMbbls Vietnam
▪ Net 2C Oil Resources: 14.6 MMbbls
Block 46 Cai Nuoc
2012 Kinabalu Oil PSC ▪ Producing asset
▪ Producing asset ▪ Operator
▪ Operator ▪ Partners: PVEP
▪ Partner: PETRONAS Carigali ▪ Net 2P Oil Reserves: 0.3 MMbbls
▪ 60% participating interest
▪ Net 2P Oil Reserves: 9.6 MMbbls
▪ Net 2C Oil Resources: 0.1 MMbbls
Australia
VIC/RL17 (West Seahorse) VIC/P57
Malaysia-Vietnam CAA* ▪ Development asset ▪ Exploration asset
▪ Operator ▪ Operator
PM3 CAA PSC ▪ 100% stake ▪ Partner: 3D Oil
▪ Producing asset ▪ Net 2C Oil Resources: 8.0 MMbbls ▪ 75.1% stake (excludes indirect
▪ Operator interest through 3D Oil)
▪ Partners: PETRONAS Carigali, PVEP
▪ 35% participating interest VIC/P74
▪ Net 2P Reserves: 8.4 MMbbls ▪ Exploration asset
▪ Net 2C Resources: 2.9 MMbbls ▪ Partner & Operator: 3D Oil
▪ Net 2P Gas Reserves: 11.7 MMboe ▪ 50% stake (excludes indirect interest through 3D Oil)
Notes:
1. Stakes represent Hibiscus’ direct ownership interest held under subsidiaries. *CAA Commercial Arrangement Area
10 2. Reserves and Resources are as of 1 January 2022. Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 2
Acquisition of New Assets
from Repsol
Completion of New Asset Acquisition – Structure & Rationale
Purchase Consideration & Funding Sources
11 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Completion of New Asset Acquisition – Structure
On 24 January 2022, Hibiscus completed the acquisition of 100% of Fortuna International Petroleum Corporation (“FIPC”) from
Repsol Exploración, S.A. The FIPC Group holds participating interests in producing oil & gas fields in Malaysia and Vietnam.
Peninsula Hibiscus
Sdn Bhd
Transaction Perimeter
Fortuna International Petroleum Corporation
(Barbados)
100% 100% 100%
Repsol Oil & Gas Malaysia Repsol Oil & Gas Malaysia Talisman Vietnam Limited
(PM3) Limited Limited (Barbados)
(Barbados) (Barbados)
Branch Malaysia Branch Malaysia
12.7% 22.3% 60% 70%
60% 60% Block 46 PSC
PM3 CAA PSC 2012 Kinabalu Oil PSC
(Cai Nuoc)
PM314 PSC PM305 PSC
Expiry: 31.12.2027 Expiry: 25.12.2032 Expiry: 31.12.2027
Expiry: 30.03.2033 Expiry: 26.11.2029
Legend
Oil Gas Hibiscus Petroleum Berhad
12
Registration Number: 200701040290 (798322-P)Completion of New Asset Acquisition – Rationale
Production Uplift (kboepd) 2P Reserve Uplift1 (MMboe) EBITDA2 Uplift (US$ million)
23.0
77.3 193
Transformational Acquisition 15.0 47.3 30 Hibiscus
101
92 Incremental
for Hibiscus 8.0
from Repsol
47.3 47.3 Assets
8.0 8.0 92 92
Previous Production Rate Combined Production Rate Previous 2P (as at 1 Combined 2P Current FY EBITDA Pro Forma EBITDA
January 2022) (as at 30 June 2021) (FYE 31 Dec 2020 for Repsol)
▪ Attractive acquisition price of US$212.5mil significantly below third-party valuation of US$285mil3
Attractive Valuation
▪ Strong cash flow generating asset with Hibiscus to receive all cash flows from effective date of 1 Jan 2021
Immediate Access to Proven &
▪ Fields have been delivering reliable production since 1997
Probable O&G Reserves, and
▪ Long term production rights between 2027 and 2033
Future Potential Upside
Current portfolio Pro forma
▪ Almost 50% of Repsol assets’ production comprises gas, which is
Diversification into Gas expected to result in diversification of Hibiscus’ portfolio to c.31% c.4% c.31%
gas (vs c.4% currently), creating a more resilient portfolio Gas Gas
Key Opportunities for Cost ▪ Processes and procurement initiatives while optimising corporate overheads
Savings ▪ Opportunity to integrate Repsol Malaysia operations with its existing Sabah operations
▪ PETRONAS Carigali (“PCSB”) as ▪ PetroVietnam Exploration & Production
partner in PM3 CAA, Kinabalu, and PM305 Corporation Ltd. (“PVEP”)
Stable Partners with & PM314 as well as in North Sabah as partner in PM3 CAA and Block 46
Established Track Records ▪ PCSB is wholly owned by PETRONAS, a fully (Cai Nuoc)
integrated O&G multinational in the ▪ PVEP is wholly-owned by PetroVietnam,
FORTUNE Global 500 the national oil company of Vietnam
1 Hibiscus reserves as of 1 January 2022; Repsol reserves as of 1 January 2022 (Derived by independent technical valuer, RPS’s report dated June 2021 adjusted for production in 2021)
2 Pro forma EBITDA is calculated using Reported EBITDA for Hibiscus Petroleum Berhad as of FYE 30 June 2021 and Adjusted EBITDA for FIPC and its subsidiaries as of FYE 31 December 2020, where Adjusted EBITDA for FIPC and
its subsidiaries is calculated based on a summation of Adjusted EBITDA across the FIPC entities as of FYE 31 December 2020 and adjusted for one-off net impairment losses and consolidation adjustments. Pro Forma EBITDA is
presented for illustrative purposes only
13
3 Post-tax 2P NPV10 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Final Purchase Consideration & Sources of Funding
• Total purchase consideration of USD212.5 million based on effective date of 1 January 2021.
• Net amount paid at completion was USD123.65 million after taking into account various
adjustments:
USD million Remarks
Purchase price 212.5 Purchase price as stated in the circular to shareholders dated 13
December 2021 for the Proposed Acquisition
(plus) Time value amount 4.65 Time value amount calculated from the effective date of 1
January 2021 to the closing date of 24 January 2022
(less) Pre-closing dividend (78.00) As declared and paid by FIPC to Repsol
(less) Leakage adjustment amount (0.50) Mainly bonuses
Balance purchase price 138.65
(less) Deposit paid 15.00
Net amount paid at completion 123.65
• Balance purchase price funded through:
• Net proceeds raised from placement of CRPS of about USD47 million;
• Drawdown of prepayment facility with Trafigura Pte Ltd of USD80 million; and
• Internally generated funds of the Group.
14 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 3
Portfolio of Assets –
Malaysia-Vietnam CAA
PM3 Commercial Arrangement Area Production Sharing
Contract
15 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Overview of PM3 CAA PSC
Asset Description Asset Footprint
▪ PM3 CAA block is located within the Commercial Arrangement
Area (CAA) between Malaysia and Vietnam for development
and exploration of oil and gas fields.
▪ PSC was extended in 2016 by 10 years until 31 Dec 2027.
▪ PM3 CAA is the only source of gas for Southwest Vietnam.
▪ Contains six fields: Bunga Orkid, Bunga Pakma in the North
and Bunga Kekwa, Bunga Raya, Bunga Seroja and Bunga Tulip
in the South.
▪ Malay Basin, CAA between Malaysia
Location
and Vietnam
Project area ▪ 1,995km2
▪ Peninsula Hibiscus* (35%), PETRONAS
Participants
Carigali (35%), PVEP (30%)
Production start-date ▪ 1997
▪ Oil & Condensate: 8.4 MMbbl
Net 2P Reserves
▪ Gas: 70.1 Bscf
PSC expiry ▪ 2027 ✓ Well-understood reservoir with long production history
✓ Low cost producing asset with material future developments
Note: * Denotes operator
✓ Low risk asset in benign shallow water environment
✓ Critical to energy / gas supply in South Vietnam
✓ Alignment since offtake provider is also partner in asset
16 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 4
Portfolio of Assets –
Malaysia
2012 Kinabalu Oil Production Sharing Contract
17 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Overview of 2012 Kinabalu Oil PSC
Asset Description Asset Footprint
▪ Kinabalu PSC is located in Sabah, offshore Malaysia, near
the Malaysia-Brunei maritime border in the Sabah Basin.
▪ Comprises Kinabalu Main, Kinabalu East and Kinabalu Far
East fields.
▪ Discovered by Sabah Shell Petroleum in 1989 with the KN-
1 exploration well.
Location ▪ Sabah, offshore Malaysia
Project area ▪ 71km2
▪ Peninsula Hibiscus* (60%),
Participants
PETRONAS Carigali (40%)
Production start-date ▪ 1997
Net 2P Reserves ▪ Oil: 9.6 MMstb
PSC expiry ▪ 2032
Note: * Denotes operator
✓ Proximity to North Sabah PSC; synergies potential
✓ Favorable fiscal terms (PVB)
✓ Low risk asset in benign shallow water environment
✓ Low cost liquids producing asset
✓ Ongoing redevelopment projects
18 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 5
Portfolio of Assets –
Malaysia
2011 North Sabah Enhanced Oil Recovery Production Sharing
Contract
19 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Overview of the North Sabah PSC
Production Offshore Sabah, Malaysia
Asset : 50% interest in the 2011 North Sabah EOR PSC:
• St Joseph Producing Field
• South Furious Producing Field
• SF 30 Producing Field
• Barton Producing Field
• All associated equipment and assets related to
the PSC including the Labuan Crude Oil Terminal
Asset Acquisition : 31 March 2018
Completion Date
Location : 33km from Kota Kinabalu, Malaysia
Water Depth : 18 – 60m
Operator : SEA Hibiscus Sdn Bhd
Partner : PETRONAS Carigali Sdn Bhd (for the remaining 50%
participating interest)
Production Life : Producing since 1979 with production rights up to Units Total
2040. Remaining Reserves (2P) 1 MMstb* 22.1
Safety Award : Awarded the MSOSH OSH Gold Class 1 Award for Contingent Resources (2C) 1 MMstb 14.6
2018 under the category of Petroleum, Gas,
Petrochemical & Allied Sectors for the St Joseph Platforms/Structures 20
Platform by the Malaysian Society for Occupational Wells2 146
Safety and Health. Won the same award for 2017.
* Million stock tank barrels.
1 North Sabah 2P Reserves and 2C Contingent Resources are based on SEA Hibiscus Sdn Bhd’s current estimated net entitlement, based on
RPS Energy Consultants Limited’s report dated August 2021, adjusted for actual production in the 6 months ended 31 December 2021.
2 As of January 2021
20 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Sale of North Sabah Crude Oil
Trades at a significant premium to the Brent crude oil benchmark
• The Labuan Crude Oil Terminal (LCOT) is a storage and offloading facility for crude oil produced from our
North Sabah asset, as well as from three neighbouring PSCs.
• LCOT, which is operated by SEA Hibiscus, processes approximately 50,000 barrels of oil a day.
• Whilst we produce oil daily, we sell our oil in cargoes from LCOT. SEA Hibiscus has entered into an offtake
agreement for the sale of its entitlement of crude oil with Trafigura Pte Ltd.
Labuan Crude Oil Terminal
21 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)North Sabah Asset Acquisition and Transformation
2011 - 2021 Production
mb/d
Operatorship • 10 Oil Producers and 1 Water
30 Injector wells successfully
transfer
25 drilled in 2019/2020.
20 • First well drilled within 14
15 months of operatorship
transfer.
10
5 • Approximately 8,000 bbl/day
of incremental capacity added
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 LE
through developments.
New Oil Production Enhancement NFA • Active production
enhancement campaigns to
mitigate base decline.
NORTH SABAH Reliability and Uptime
7.0% 6.1%
5.8% • Strong reliability performance
6.0% 5.5% 5.5%
5.0% improvements.
4.7%
Deferment, %
4.6%
5.0%
4.0%
• Prioritisations in safety and
integrity maintenance
3.0%
5.0%
investments, in line with
2.0% 4.3% projected extensions in
3.6% 3.6%
1.0% 2.3% 2.1% 2.1% facilities life end.
0.0%
2014 2015 2016 2017 2018 2019 2020
PD UPD
22 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Operating Performance Metrics
Oct – Dec Jul – Sep Apr – Jun Jan – Mar
Unit
2021 2021 2021 2021
Average uptime % 92 81 95 95
Average gross oil production bbl/day 16,305 14,368 17,281 17,796
Average net oil production bbl/day 5,937 5,185 6,394 6,585
Cargoes sold - 2 2 2 2
Total oil sold bbls 587,374 565,292 608,006 599,948
Average realised oil price1 USD/bbl 75.15 75.01 72.07 60.46
Average OPEX per bbl
USD/bbl 13.06 19.14 15.67 10.91
(unit production cost)
1 The
average realised oil price represents the weighted average price of all Labuan crude sales from SEA Hibiscus.
2 Figures
for the period October 2021 to December 2021 are provisional and may change subject to the PSC Statement audit and Petroliam
Nasional Berhad (“PETRONAS”)’s approval.
23 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Awards Won
Malaysia Upstream Awards 2020
Best Emerging Petroleum Wells Excellence Category – Drilling Excellence Category –
Arrangement Contractor GOLD Award BRONZE Award
2021 PETRONAS Focused Recognition Award Chief Government Security Office 5 Star Rating Award
Successful Completion of MPM Integrated Assurance – Awarded for 5 Star Rating Award given to Labuan Crude Oil Terminal by the Chief
successfully completing the MPM Integrated Assurance activities Government Security Office, commending the high commitment and
with no reported incident or accident, contributing to increased priority towards safety and security in protecting national interests and
stakeholder confidence by improving internal systems and controls. for being one of 15 national assets receiving a 5-star award.
24 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 6
Portfolio of Assets –
United Kingdom
The Anasuria Cluster
25 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Overview of UK Portfolio
Direct access to cashflows and located in an established legal jurisdiction
100%
Atlantic Hibiscus Sdn Bhd
100%
Hibiscus Petroleum Berhad Production asset
Anasuria Hibiscus
UK Limited Development asset
Marigold Project 50% 50% Anasuria Cluster
Anasuria Operating Company
Limited
12.5% Licence P.198 87.5% Operator
Caldera Petroleum
▪ Block 15/13a (Marigold)
(UK) Ltd ▪ Block 15/13b (Sunflower) Operator
Licence P.013
50% 50%
▪ Teal South Field Ping Petroleum UK
▪ Teal Field Limited
100% ▪ Guillemot A Field
Licence P.2518
▪ Block 15/17a (Kildrummy)
50% 50%
Anasuria FPSO & associated infrastructure
Ithaca Energy UK
Licence P.185 19.3% Limited
19.3% ▪ Cook Field
Licence P.2532 61.4% Operator
▪ Blocks 21/19c & 21/20c
(Contiguous to Cook Field)
70% 30%
Licence P.2535 NEO Energy (ZPL)
▪ Block 21/24d (Teal West) Limited
26 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)United Kingdom: The Anasuria Cluster
Production in the UK Sector of the North Sea
Asset Name Asset Type Hibiscus’ Stake Operator
Guillemot A Producing Field 50% AOC
Teal Producing Field 50% AOC
Teal South Producing Field 50% AOC
Cook Producing Field 19.3% Ithaca
Anasuria FPSO FPSO 50% AOC
Asset Acquisition : 10th March 2016
Completion Date
Location : ~ 175 km east of Aberdeen, UK North Sea
Water depth : ~ 94 m
2P Oil Reserves : 23.6 MMbbls (as of 1 January 2022)1
Production Life : Producing since 1996. Economic life up to 20352
Operatorship : Hibiscus is a joint-operator via the Anasuria
Operating Company Ltd (“AOC”), a Joint-Operating
Company between Hibiscus (50%) and Ping (50%)
Safety Award : Anasuria awarded Order of Distinction from the
Royal Society for the Prevention of Accidents
(ROSPA), United Kingdom for 22 consecutive annual
gold awards.
1 Anasuria 2P Reserves are based on Anasuria Hibiscus UK Limited’s interest and extracted from RPS Energy Consultants Limited’s report dated August 2021,
adjusted for actual production in the 6 months ended 31 December 2021
27 2 Subject to investment, OPEX, oil price and 2P reserves Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Schematic of Field Layout and Infrastructure
Anasuria FPSO
Cook Field
Teal Field
Guillemot A Field
Teal South Field
Infrastructure
The asset infrastructure is laid over a
distance of approximately 25km from
Cook Field in the north to Guillemot A
Field in the south, and includes the
Anasuria FPSO.
28 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Sale of Anasuria Crude Oil
Transparent marketing and reporting of our UK crude oil offtakes by BP Oil
• Anasuria Hibiscus has entered into a long-term offtake and marketing agreement for the sale of
crude oil with BP Oil International Limited (“BPOI”).
• Whilst we produce oil daily, we sell our oil in cargoes.
• Using their global marketing network, BPOI identifies a potential customer for our oil, locks in a
competitive price for the cargo and arranges the ‘lifting’ of the oil via tanker to the client refinery.
29 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Operating Performance Metrics
Oct – Dec Jul – Sep Apr – Jun Jan – Mar
Units
2021 2021 2021 2021
Average uptime % 75 69 53 91
Average net oil production rate bbl/day 2,087 1,904 1,402 2,463
1
Average net gas export rate boe/day 310 301 240 354
Average net oil equivalent
boe/day 2,396 2,206 1,642 2,816
production rate
Cargoes sold - 1 2 1 1
Total oil sold bbl 256,224 191,770 254,945 274,996
Total gas exported (sold) mmscf 171 166 131 191
Average realised oil price USD/bbl 72.02 76.31 62.67 54.04
Average gas price USD/mmbtu 20.112/23.693 4.562/10.443 2.602/5.803 2.302/5.363
Average OPEX per boe USD/boe 24.31 27.94 38.22 18.15
• Operational performance for the Current Quarter continues to be affected by unavailability of the critical
component of the subsea infrastructure which malfunctioned in May 2021. Engineering and procurement
activities are currently on-going on a fast-track basis with execution expected to be concluded in Q3
CY2022. Until the failed component is returned to service, we anticipate that there will be an impact on
CY2022 offtake volumes and OPEX per boe.
All figures are net to Hibiscus.
Prices are quoted in United States Dollars. bbl barrels
1 Conversion rate of 6,000scf/boe.
boe barrels of oil equivalent
2 For Cook Field.
mmscf million standard cubic feet
3 For Guillemot A, Teal and Teal South Fields.
mmbtu million British thermal units
30 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Anasuria Cluster – Further Opportunities
Teal West Tieback & Hub Strategy
• Hibiscus has been investigating opportunities to extend the
economic life, unlock value and maximise recovery from
stranded oil discoveries around the Anasuria FPSO.
• The License Agreements were executed for 70% interest in
Licence P2535 (Block 21/24d, containing the Teal West
discovery) and 19.3% interest in Licence P2532 (Block
21/19c and Block 21/20c), contiguous to the Cook field.
These Blocks were offered as part of the 32nd Offshore
Licensing Round launched by the UK Oil and Gas Authority
(OGA) in July 2019.
• The base development plan for the Teal West field is
to drill an oil producer well to the southeast of the
structure, followed by a water injector well at the west Teal West Tie-back to Anasuria FPSO
of the structure (to be drilled about 12 to 18 months
later). The Teal West field is planned to be produced • The Teal West Concept Select Report was submitted to
to the Anasuria FPSO – about 4km away – where the the OGA on 10 September 2021 and a Letter of No
fluids will be processed and exported via the Anasuria Objection received on 15 November 2021. Teal West is
infrastructure. planned to be developed on an accelerated schedule,
with the following future milestones:
• On the commercial aspects of the Anasuria FPSO
tieback, the Heads of Agreement for a Transportation, • Field Development Plan (FDP) submission to the
Processing and Operating Service Agreement was OGA (estimated first half CY2022);
executed between the Anasuria Operating Company • Drilling of oil development well (estimated second
Limited and Anasuria Hibiscus UK on 4 August 2021. half CY2023);
Advanced discussions are also on-going with the gas • Subsea pipelines installation (estimated first half
pipeline owners to extend the current Anasuria Hibiscus CY2024); and
UK gas sales agreement for the Anasuria Cluster to
include gas production from Teal West. • Teal West First Oil (estimated mid CY2024)
31 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Awards Won
Safety Awards and Achievements
Gold Award
Awarded by the Royal Society for the Prevention of Accidents
(ROSPA) for calendar year 2020 health and safety performance
of the Anasuria FPSO facility – 22nd consecutive annual award
Order of Distinction
Awarded by ROSPA for 22 consecutive Gold Awards
Seven years without a Lost Time Incident on the
Anasuria FPSO achieved on 6th October 2021
Note: Hibiscus has been joint-operator of the Anasuria asset since 10 March 2016. Prior to that, Shell was the operator from
commencement of field production in 1996.
32 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 7
Portfolio of Assets –
Vietnam
Block 46 Cai Nuoc
33 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Overview of Block 46 Cai Nuoc PSC
Asset Description Asset Footprint
▪ Block 46 lies in Vietnamese waters adjacent to the PM3 CAA,
and contains the producing Cai Nuoc field and the
undeveloped Hoa Mai field.
▪ Cai Nuoc is an extension of the East Bunga Kekwa field and
was unitised with East Bunga Kekwa in 2000, forming the East
Bunga Kekwa – Cai Nuoc unit field.
▪ The field is tied back to PM3 CAA’s facilities, with first oil being
produced in 2003.
Location ▪ Northeast Malay Basin
Project area ▪ 82km2
Participants ▪ Peninsula Hibiscus* (70%), PVEP (30%)
Production start-date ▪ 2003
Net 2P Reserves ▪ Oil: 0.3 MMbbl
PSC expiry ▪ 2027
Note: * Denotes operator
34 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 8
Portfolio of Assets –
United Kingdom
Marigold & Sunflower
35 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)United Kingdom: Marigold & Sunflower
A Potential Game Changer
Asset : 87.5% interest in:
• Block 15/13a (Marigold)
• Block 15/13b (Sunflower)
Asset Type : Development
Location : 250km northeast of Aberdeen, UK
Water Depth : Approximately 140m
Acquirer/Operator : Anasuria Hibiscus UK Limited (AHUK)
Partner : Caldera Petroleum (UK) Ltd (for the
remaining 12.5% participating interest)
Sellers : Caldera Petroleum (UK) Ltd
Contingent Oil Resources (MMstb)
2C
Gross* Net
Marigold 44.0 38.5
Sunflower 5.8 5.1
Total 49.8 43.6
* Source: RPS Energy Report, July 2020
36 From hereon, Marigold and Sunflower will be referred to as Marigold Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Target Development Milestones
• AHUK has been pursuing the development of the
Marigold and Sunflower fields in Licence P198 since
early 2019. AHUK currently owns 87.5% of the
licence and 2C resources of 43.6 MMbbls.
• In November 2021, the OGA requested that
Anasuria Hibiscus UK work with Ithaca Energy
Limited, holder of Licence No. P2158 (Block 15/18b)
which is adjacent to the Marigold field and contains
the Yeoman discovery, and jointly develop the
resources found in both licences via a tieback to the
Piper B platform.
• The first oil date for Phase 1 of the joint
development is now expected to be late 2024 at the
earliest. The development of the Sunflower and
Kildrummy discoveries are planned as tiebacks to
the Marigold infrastructure in subsequent project
phases.
2023
Mid-2019 2022 - FID & OGA 2025
Joint Development Approval of FDP Piper B Tieback
Complete - Potential
Concept Approval Option First Oil
Concept Select Farm-out
Oct-2018
Acquisition • Site Survey
Completion • FEED
• Tendering for
Facilities
Notes: OGA: Oil & Gas Authority FID: Final Investment Decision
Target milestones are based on Company’s internal targets. FDP: Field Development Plan FEED: Front-End Engineering Design
37 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Marigold – Further Opportunities
Kildrummy Discovery
• On 19 January 2021, AHUK executed the Licence
Agreement for 100% interest in Block 15/17a,
containing the Kildrummy discovery. The Block is
located 8km from Marigold and is hoped that the
Kildrummy discovery may become a potential tieback
candidate.
Sunflower
Transaction Rationale Marigold
• Opportunity to aggregate 2C resources at a
competitive unit cost per barrel and integrate these
reserves as part of the Marigold area-wide Kildrummy
development with the objective of reducing overall
unit development and production costs.
Location of Block 15/17a (Kildrummy discovery)
38 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 9
Portfolio of Assets –
Australia
Bass Strait Assets
39 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Ownership Structure of our Australia Assets
WA/527-P
Hibiscus Petroleum Berhad
100%
Oceania Hibiscus Sdn Bhd
11.68% 100% VIC/P57
VIC/P79 VIC/RL17
T/49P VIC/P74
Carnarvon Hibiscus
3D Oil Limited Pty Ltd (CHPL)
Licence WA/527-P
100% 24.9% 75.1% 100% Retention Lease VIC/RL17
Licence VIC/P57
▪ West Seahorse Field
Licence T/49P
20%
50% 50%
Licence VIC/P74
Licence VIC/P79
100%
VIC/RL17
VIC/P57, VIC/RL17 & VIC/P74
VIC/P79
WA/527-P T/49P Hibiscus Petroleum Berhad
40
Registration Number: 200701040290 (798322-P)Development & Exploration Opportunities
VIC/P57 Exploration Licence VIC/P74 Exploration Licence
Acquisition Date: January 2013 Acquisition Date: October 2019
Water Depth/Acreage: c. 50m/340km2 Water Depth/Acreage: 45-75m/1,006km2
Participating Interest: 75.1%1 (Concession Operator) Participating Interest: 50%1
Best Estimate Prospective Best Estimate Prospective 928 Bcf gas
Resources: Pointer: 177 Bcf gas Felix: 12 MMbbls Resources: (Oarfish, BigFin, Megatooth, Stargazer)
Work Completed: Drilled an exploration well in the Licence Expiry: 25 July 2025
Sea Lion prospect in Q4 2015
PHASE 1: PROSPECT GENERATION PHASE
Licence Expiry: 6 March 2024
Years 1-3 Purchase 905km2 reprocessed full-fold 3D seismic data
MINIMUM GUARANTEED WORK PROGRAMME
(Jul ‘19 - Jul ‘22)
Geological and geophysical studies, including interpretation
Years 1-3 Geological and geophysical studies including
and permit-wide mapping of seismic data
(Mar ‘18 - Mar ‘22) petroleum systems analysis/modelling
COMPLETED PHASE 2: WELL DRILLING PHASE (OPTIONAL)
Reprocessing of 230km2 of the Northern Fields
3D seismic data Years 4-6 Drill exploration well(s) (CHPL as operator)
(Aug ‘22 - Jul ‘25)
Seismic interpretation and depth conversion Geological and geophysical studies (3D Oil as operator)
SECONDARY WORK PROGRAMME (OPTIONAL) For substantial farm-in, farmee to be operator for all
Year 4 (Apr ‘22 - Mar ‘23) One exploration well
Current Status
Year 5 (Apr ‘23 - Mar ‘24) Geological and geophysical studies • VIC/P57: Minimum Guaranteed Work Programme completed two years ahead of
schedule. Encouraging results from subsurface evaluation work. 12-month extension
granted by NOPTA to the permit term, with expiry on 6 March 2024.
• VIC/RL17: Retention Lease application for VIC/L31 Production Licence submitted on 4
VIC/RL17 Retention Lease December 2018. On 5 November 2021, NOPTA granted approval of this application
subject to the work program stated in the title instrument and associated conditions
Award Date: November 2021
to be met. The Retention Lease is now called VIC/RL17.
Stake: 100% (Concession Operator) • VIC/P74: Exploration Permit awarded to 3D Oil. Completed farm-in for a 50% non-
2C Oil Resources: 8.0 MMbbls operated interest. Leads with Best Estimate Prospective Resource of 928 Bcf of gas
Water depth:Part 10 Financial Performance
42 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Continuous Improvements & Key Performance Metrics
• The key indicator (KPI) that measures asset performance is the operating cost per barrel
(OPEX/bbl).
Focused on cost management
OPEX
bbl Production to increase with
projects identified for 2020
• As we undertake high capital expenditure projects which involve various tax treatments,
including some that are non-cash in nature, we highlight EBITDA as an important metric.
43 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)EBITDA – To Be Boosted by New Producing Assets
250,000
200,000
150,000
100,000
EBITDA, RM '000
50,000
0
-50,000
One-off provision for impairment of our
-100,000 Australian assets amounting to RM183.5m
-150,000
-200,000
-250,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2018 FY2018 FY2018 FY2018 FY2019 FY2019 FY2019 FY2019 FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022
Anasuria N. Sabah Others
Notes: Others include Group, Investment Holding and Australian activities
44 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Financial Highlights by Operating Segment
2Q FY2022
RM’000 North Sabah Anasuria Others1 Group Revenue 2Q FY2022 1Q FY2022
Cargoes sold 2 1 - 3 North 587,374 bbls x 565,292 bbls x
Sabah USD75.15/bbl USD75.01/bbl
Revenue 184,447 98,588 1,369 284,404
256,224 bbls * x 191,770 bbls x
Anasuria
Gross Profit 139,362 51,407 1,369 192,138 USD72.02/bbl USD76.31/bbl
* Included in the 256,224 bbls was an overlift volume of 90,000
EBITDA/(LBITDA) 105,435 44,950 (10,476) 139,909 bbls. In accordance with the relevant accounting principles, the
initial measurement of the overlift volume has been included in
PBT/(LBT) 72,832 27,868 (12,033) 88,667 both the segment’s revenue and cost of sales (at the average
realised oil price for the offtake), hence no gross profit has been
recognised on this overlift transaction in 2Q FY2022.
Tax (29,252) (10,931) 4 (40,179)
PAT/(LAT) 43,580 16,937 (12,029) 48,488 Gross Profit
2Q FY2022 1Q FY2022
Margin
1Q FY2022
North Sabah 75.6% 65.8%
1
RM’000 North Sabah Anasuria Others Group
Anasuria 52.1% 57.8%
Cargoes sold 2 2 - 4
EBITDA Margin 2Q FY2022 1Q FY2022
Revenue 177,679 67,428 1,583 246,690
North Sabah 57.2% 57.4%
Gross Profit 116,850 38,951 1,583 157,384
Anasuria 45.6% 52.1%
EBITDA/(LBITDA) 101,933 35,136 (13,434) 123,635
Effective Tax Rate
PBT/(LBT) 69,985 18,608 (13,823) 74,770 2Q FY2022 1Q FY2022
(over PBT)
Tax (26,787) (6,465) 5 (33,247) North Sabah 40.2% 38.3%
PAT/(LAT) 43,198 12,143 (13,818) 41,523 Anasuria 39.2% 34.7%
1 Others
include Group, Investment Holding and Australian activities |
45 USD/MYR average rate: 2Q FY2022: 4.1784, 1Q FY2022: 4.1906 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Operatorship Allows High Degree of Cost Control
Flexibility to Navigate Industry Downturns
• Operational control grants the ability to concentrate on operating efficiencies (cost control, production enhancement) when oil prices are low and shift to
development mode when oil prices are high
• Remained cash flow positive when oil prices crashed in April 2020 by reducing OPEX and deferring CAPEX
• High quality operations team helps to reduce downtime to maximise production
Strong Focus on OPEX Reduction and Profitability Enhancement
• The average unit production costs (OPEX per boe or OPEX per bbl) for both the Anasuria Cluster and the North Sabah PSC are well below the average realised oil
price achieved in the respective quarters
• The careful management of costs to maintain low OPEX and the delivery of production enhancement projects are key towards obtaining low unit production costs
• Focus on delivering strong and sustainable EBITDA levels as long-term business continuity is of the highest priority
• Proven track record of cost control creates an opportunity to improve efficiencies of the new assets
Notes:
1. Anasuria Cluster’s EBITDA margin in 2Q FY2021 was affected by (unusual) significant unrealised foreign exchange losses caused by the relatively significant appreciation of the GBP
against the USD which affected the period-end retranslation of GBP-denominated balances and one-off provisions recognised.
2. North Sabah’s EBITDA margin in 4Q FY2020 excluded the reversal of unrecovered recoverable costs of RM78.2 million.
46 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Highlights from the Group’s Balance Sheet
A strong Balance Sheet
As at As at As at As at As at
RM 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec
2021 2021 2021 2021 2020
Total assets 3,099.6m 2,880.4m 2,788.0m 2,722.3m 2,615.2m
Shareholders’ funds 1,553.0m 1,529.5m 1,473.9m 1,418.4m 1,241.0m
Cash and bank balances 824.4m 337.7m 303.2m 226.6m 213.3m
Unrestricted cash 552.0m 204.0m 173.9m 105.5m 102.7m
* For more information, please refer
Restricted cash * 272.4m 133.7m 129.3m 121.1m 110.6m to page 6 of the Unaudited
Quarterly Financial Report for the
Total debt (2.4m) (2.7m) (5.7m) (11.0m) (128.6m) quarter ended 31 December 2021.
Net current assets 336.2m 226.9m 186.2m 151.5m 174.8m
Net assets per share 0.77 0.76 0.74 0.71 0.72
• Year-on-year, both total assets and shareholders’ funds have grown by RM484.4 million and RM312.0 million respectively. Included in shareholders’ funds as at
31 December 2021 are retained earnings of RM521.8 million.
• Net current assets position as at 31 December 2021 is strong, at RM336.2 million.
• The Group’s total cash and bank balances are at reasonably healthy levels. In anticipation of the completion of the acquisition of the entire interest in Fortuna
International Petroleum Corporation, the Group had in December 2021 drew down the prepayment facility with Trafigura Pte Ltd amounting to RM334.8
million and withdrew the funds in other investment amounting to RM136.6 million. These amounts were included in the cash and bank balances as at 31
December 2021.
• Successful fund-raising of Islamic Convertible Redeemable Preference Shares (“CRPS”) of RM203.6 million to date. Out of this, RM196.1 million was utilised to
complete the acquisition of the entire interest in Fortuna International Petroleum Corporation on 24 January 2022. (Note: Total debt balance shown above
relates to the recognition of the liability component of the CRPS upon the issuance of the first two tranches in November 2020. As at 31 December 2021, 99%
of the total CRPS issued has been converted into ordinary shares, which explains the sharp reduction in the debt balance from 31 December 2020 to 31
December 2021. The CRPS conversion has also resulted in total issued ordinary shares increasing from 1,722 million as at 31 December 2020 to 2,008 million as
at 31 December 2021. Despite this, net assets per share have increased compared to 31 December 2020.)
• The Group will continue to engage with financial institutions and industry players to explore funding options and capital raising initiatives which run in tandem
with our growth plans.
47 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Part 11 Key Messages
48 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Key Messages
Fully operated and producing portfolio allows for cost management flexibility and synergies potential
• Sold 843,598 barrels of oil between 1 October 2021 and 31 December 2021 from the North Sabah and Anasuria assets
• FY2022 target is to deliver a base volume of approximately 2.5-2.7 million barrels of oil equivalent (boe) from both assets
Acquisition of Repsol assets in Malaysia, Vietnam and in the Commercial Arrangement Area (CAA)
concluded in January 2022
• New assets to add approximately a further 2.5 million boe for the period between the acquisition completion date of 24
January 2022 to the end of FY2022 (30 June 2022)
• Daily production rates tripling from circa 8,000 boe per day to about 23,000 boe per day
Further strengthening of oil prices will strengthen EBITDA margins
• Focus on delivering strong and sustainable EBITDA levels as long-term business continuity is of the highest priority
FY2021 Final Dividend of 1.0 sen per share paid on 28 January 2022
• Total dividend of 1.5 sen declared in respect of FY2021
Commitment to energy transition with independently recognised ESG practices
• Strong ESG focus with numerous awards to highlight efforts made during 10 year operating history
• The Group has made significant progress in reducing our Greenhouse Gas emissions (Scope 1 and Scope 2) in 2021
Remain focused on delivering optimal performance in an improving oil price environment
• Safe and efficient operations
• Risk management
• Cost management and financial discipline
49 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Appendix
• Views from Analysts
• Reserves and Resources Classification
• Profiles: Board of Directors and Key Management
50 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Views from Analysts
51 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Reserves and Resources Classification
Increasing Commerciality
Low High
Low
Undiscovered - Discovered -
Discovered -
Prospective Contingent
Reserves
Resources Resources
Range of Certainty
High Estimate 3C 3P
Best Estimate 2C 2P
Low Estimate 1C 1P
High
Source: Society of Petroleum Engineers and World Petroleum Council
52 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)Profiles: Board of Directors
Zainul Rahim bin Mohd Zain, Non-Independent Non-Executive Chairman
• Appointed to the Board in December 2010.
• Serves on the Boards of Cenergi SEA Berhad, Standard Chartered Saadiq Berhad and the Malaysian Dutch Business Council.
• Previously Board member of UKM Holdings Sdn Bhd, Bank Pembangunan Malaysia Berhad, Petronas Carigali Sdn Bhd, redT energy Plc, and was Deputy Chairman of Shell Malaysia,
Chairman of Shell companies in Egypt, and Managing Director of Shell Egypt N.V
• Bachelor of Engineering, majoring in Mechanical Engineering, from the University of Western Australia
Dr Kenneth Gerard Pereira, Managing Director
• Founder of Hibiscus, appointed to the Board in September 2010.
• 33 years’ experience in the oil and gas industry, both in the services and exploration and production sectors.
• Serves on the Board of all of Hibiscus Petroleum’s subsidiaries, and other various private companies.
• Initiated the oil and gas services business of Sapura Group under Sapura Energy Sdn Bhd.
• Bachelor of Science (Honours) degree in Engineering from the University of Bath; an MBA from Cranfield University; and a Doctorate in Business Administration (“DBA”) from the
University of South Australia.
Dato’ Sri Roushan Arumugam, Independent Non-Executive Director
• Appointed to the Board in July 2011.
• Chairman of the Remuneration Committee.
• Serves on the Boards of South Pickenham Estate Company Limited, Pneumacare Limited and Sri Inderajaya Holdings Sdn Bhd amongst other private companies
• Previously served as Manager in Debt Capital Markets Division at Nomura Advisory Services Sdn. Bhd.
• MA in English Language and Literature from St. Catherine’s College, Oxford University; MA in Law from the University of Bristol, United Kingdom; and MBA from Imperial College Business
School, Imperial College, United Kingdom.
Thomas Michael Taylor, Senior Independent Non-Executive Director
• Appointed to the Board in August 2016.
• Chairman of Audit and Risk Management Committee.
• Joined Shell In 1984 until his retirement in 2012. Held various posts and directorships in several Shell Group companies including Finance Director of Shell Malaysia from 2004-2009 and
Finance Director of Brunei Shell Petroleum from 2009-2012.
• MA in Engineering from the University of Cambridge.
• Member of the Chartered Institute of Management Accountants.
Dato’ Dr Zaha Rina Zahari, Independent Non-Executive Director
• Appointed to the Board in September 2017.
• Over 30 years’ experience in financial (including Islamic), commodities and securities industry, developing the Malaysian Financial Market, M&A in insurance and Takaful companies.
• Currently the Chairman of Manulife Holdings Berhad and on the Board of Pacific & Orient Berhad, IGB Berhad and Keck Seng (Malaysia) Berhad as an Independent Director. Licensed by
Securities Commissions of Malaysia for corporate advisory services.
• Previously served as CEO, RHB securities Bhd; COO, Kuala Lumpur Options and Financial Futures Exchange; and Head of Exchanges of KLSE, MESDAQ, MDEX and Labuan Offshore Financial
Exchange.
• BA (Hons) Accounting and Finance from Leeds UK; MBA from Hull University; DBA from Hull University on capital markets research, specialising in derivatives; Global Leadership
Development Programme, International Centre Leadership in Finance (ICLIF).
53 Hibiscus Petroleum Berhad
Registration Number: 200701040290 (798322-P)You can also read
