Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (October 2022)
58 slides from Hibiscus Petroleum Bhd's investor presentation, October 2022
Slide 1: An Insight Into Hibiscus Petroleum Berhad
An Insight Into Hibiscus Petroleum Berhad October 2022 R2
Slide 2: Disclaimer
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 i
Slide 3: Content
Content Part 1: Introduction to Hibiscus Petroleum Part 2: Malaysia-Vietnam CAA – PM3 CAA PSC Part 3: Malaysia – 2012 Kinabalu Oil PSC Part 4: Malaysia – 2011 North Sabah EOR PSC Part 5: United Kingdom – Anasuria Cluster Part 6: Vietnam – Block 46 Cai Nuoc PSC Part 7: United Kingdom – Marigold & Sun
Slide 4: Introduction to Hibiscus Petroleum Berhad
Part 1 Introduction to Hibiscus Petroleum Berhad Malaysian Pure Play E&P Company 4 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 5: Hibiscus Today
Hibiscus Today Revenue generating and profitable production operations Highlights Company Snapshot Shares Issued1 2,012,418,743 • Listed in 2011 on the Main Market of Bursa Malaysia. Shareholders1 > 18,000 • Our goal is to grow our business by enhancing production from mature assets Market Capitalis
Slide 6: ESG Highlights
ESG Highlights Environment Social Governance Net Zero Emissions Increase of portfolio of Sponsored HPV¹ Recipient of Health Continue top 25% Constituent of FTSE4Good Producer by 2050 gas assets to 31 % Screenings to Sabah and Safety placing by ESG² Bursa Malaysia Index and B40 women performance awar
Slide 7: Current Reserves and Resources
Current Reserves and Resources • As of 1 July 2022, our net entitlement to 2P oil, condensate and gas reserves and 2C oil resources within the licenses in which we have interests are as follows: 100 Million Barrels of Oil Equivalent UK - Teal West UK - Marigold & Sunflower 75 70.2 4.0 Australia - VI
Slide 8: Refreshed Vision & Mission
Refreshed Vision & Mission LARGE ENOUGH TO BE MATERIAL, SMALL ENOUGH TO BE AGILE Vision Mission (2017-2021) People Vision Mission (2017 – 2021) To be a Respected and • 100 MMbbls net 2P (proven and Valuable Independent Oil probable) oil reserves/entitlement and Gas Exploration and in existing core a
Slide 9: Leadership Team
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 Zainul Rahim bin Dr Kenneth Dato
Slide 10: Shareholder Base
Shareholder Base A public company with strong liquidity and a diversified shareholder base Number of 21.29 Shares2 % of Shareholder Profile Shares million (million) Average Daily Trading Volume RM 0.98 179.56 8.9 Management Team September 2022 Share Price1 138.90 6.9 Polo Investments Limited 75.46 3
Slide 11: Current Portfolio of Assets
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: NEO Energy (ZPL) Energy Limited ▪ Net 2P Oil R
Slide 12: Portfolio of Assets – Malaysia-Vietnam CAA
Part 2 Portfolio of Assets – Malaysia-Vietnam CAA PM3 Commercial Arrangement Area Production Sharing Contract 12 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 13: Overview of PM3 CAA PSC
Overview of PM3 CAA PSC Production Offshore Sabah, Malaysia ▪ Well-understood reservoir with long production history ▪ Contains six fields: Bunga Orkid, Bunga Pakma in the North and Bunga Kekwa, Bunga Raya, Bunga Seroja and Bunga Tulip in the South. Asset details ▪ PM3 CAA is the only source of gas
Slide 14: Operating Performance Metrics
Operating Performance Metrics Apr – Jun Jan – Mar Unit 20221 2022 Average uptime % 91 96 Average gross oil & condensate bbl/day 14,033 14,293 production Average net oil & condensate production bbl/day 2,639 2,467 Average gross gas export rate boe/day 33,447 36,217 Average net gas export rate boe/day
Slide 15: Recent Awards & Achievements
Recent Awards & Achievements Four years LTI-free on the BO-A Successful in Increasing Production to Malaysia Upstream Awards – Awarded the Platform achieved on 13 April 2022. Meet High Gas Demands – Awarded BRONZE award for Project Delivery in March 2022 for increasing gas Excellence for tremendous
Slide 16: Portfolio of Assets – Malaysia
Part 3 Portfolio of Assets – Malaysia 2012 Kinabalu Oil Production Sharing Contract 16 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 17: Overview of 2012 Kinabalu Oil PSC
Overview of 2012 Kinabalu Oil PSC Production Offshore Sabah, Malaysia ▪ Kinabalu Main Producing Field ▪ Kinabalu East Producing Field ▪ Kinabalu Far East Producing Field ▪ Proximity to North Sabah PSC; synergies potential ▪ Favourable fiscal terms (PVB) Asset details ▪ Low risk asset in benign shall
Slide 18: Operating Performance Metrics
Operating Performance Metrics Apr – Jun Jan – Mar Unit 20221 2022 Average uptime % 91 77 Average gross oil production bbl/day 11,351 10,187 Average net oil production bbl/day 3,157 2,946 Total oil sold bbls 350,236 02 Average realised oil price USD/bbl 121.15 - Average OPEX per bbl3 USD/bbl 10.61 6.
Slide 19: Portfolio of Assets – Malaysia
Part 4 Portfolio of Assets – Malaysia 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract 19 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 20: Overview of the North Sabah PSC
Overview of the North Sabah PSC Production Offshore Sabah, Malaysia 50% interest in the 2011 North Sabah EOR PSC: ▪ St Joseph Producing Field ▪ South Furious Producing Field Asset details ▪ SF 30 Producing Field ▪ Barton Producing Field ▪ All associated equipment and assets related to the PSC includ
Slide 21: Sale of North Sabah Crude Oil
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 Hibi
Slide 22: North Sabah Asset Acquisition and Transformation
North Sabah Asset Acquisition and Transformation NORTH SABAH 2011-2022 Production • 10 Oil Producers and 1 Water 30 Injector wells successfully drilled 25 Operatorship in 2019/2020. transfer 20 • First well drilled within 14 15 months of operatorship transfer. 10 • Completed 4 out of 6 Minimum 5 Wor
Slide 23: Operating Performance Metrics
Operating Performance Metrics Apr – Jun Jan – Mar Oct – Dec Jul – Sep Unit 2022 2022 20212 2021 Average uptime % 85 87 92 81 Average gross oil production bbl/day 13,893 14,445 16,305 14,368 Average net oil production bbl/day 4,460 4,695 5,937 5,185 Total oil sold bbls 611,800 300,252 587,374 565,292
Slide 24: Recent Awards & Achievements
Recent Awards & Achievements Malaysia Upstream Awards – Awarded for Successful Delivery of Production 5 Star Rating Award given to Labuan Best Emerging Petroleum Arrangement Enhancement Gains – Awarded for Crude Oil Terminal by the Chief Contractor, GOLD award for Well Excellence successful producti
Slide 25: Portfolio of Assets – United Kingdom
Part 5 Portfolio of Assets – United Kingdom The Anasuria Cluster 25 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 26: Overview of UK Portfolio
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 Limi
Slide 27: Overview of the Anasuria Cluster
Overview of the Anasuria Cluster Production in the UK Sector of the North Sea Asset Name Asset Type Hibiscus’ Operator Stake Guillemot A Producing Field 50% AOC Asset details Teal Producing Field 50% AOC Teal South Producing Field 50% AOC Cook Producing Field 19.3% Ithaca Anasuria FPSO FPSO 50% AOC
Slide 28: Schematic of Field Layout and Infrastructure
Schematic of Field Layout and Infrastructure Anasuria FPSO Cook Field Teal Field Teal South Field 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. Guillemot A Field 28 Hibiscus Petro
Slide 29: Sale of Anasuria Crude Oil
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
Slide 30: Operating Performance Metrics
Operating Performance Metrics Apr – Jun Jan – Mar Oct – Dec Jul – Sep Units 2022 2022 2021 2021 Average uptime % 61 68 75 69 Average net oil production rate bbl/day 1,644 1,702 2,087 1,904 1 Average net gas export rate boe/day 239 281 310 301 Average net oil equivalent boe/day 1,884 1,983 2,396 2,20
Slide 31: Anasuria Cluster – Further Opportunities
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
Slide 32: Recent Awards & Achievements
Recent Awards & Achievements Gold Award Seven years without a Lost Time Incident on the Awarded by the Royal Society for the Anasuria FPSO achieved on 6th October 2021. Prevention of Accidents (ROSPA) for calendar year 2021 health and safety performance of the Anasuria FPSO facility – 23rd consecuti
Slide 33: Portfolio of Assets – Vietnam
Part 6 Portfolio of Assets – Vietnam Block 46 Cai Nuoc 33 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 34: Overview of Block 46 Cai Nuoc PSC
Overview of Block 46 Cai Nuoc PSC Production Offshore Malaysia-Vietnam ▪ 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 Asset details and was unitised wit
Slide 35: Portfolio of Assets – United Kingdom
Part 7 Portfolio of Assets – United Kingdom Marigold & Sunflower 35 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 36: United Kingdom: Marigold & Sunflower
United Kingdom: Marigold & Sunflower Development Asset: A Potential Game Changer Asset Type ▪ Development asset Location ▪ 250km northeast of Aberdeen, UK Project area ▪ 82km2 Water depth ▪ ~ 140 m Operator ▪ Anasuria Hibiscus UK Limited (AHUK) ▪ Caldera Petroleum (UK) Ltd (for the remaining 12.5% P
Slide 37: Target Development Milestones
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 NSTA requested that Anasuria Hibiscus UK work with Ithaca En
Slide 38: Marigold – Further Opportunities
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 candidat
Slide 39: Portfolio of Assets – Australia
Part 8 Portfolio of Assets – Australia Bass Strait Assets 39 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 40: Ownership Structure of our Australia Assets
Ownership Structure of our Australia Assets WA/527-P Hibiscus Petroleum Berhad 100% Oceania Hibiscus Sdn Bhd 11.68% 100% VIC/RL17 VIC/P79 VIC/P74 Carnarvon Hibiscus 3D Oil Limited T/49P Pty Ltd (CHPL) Licence WA/527-P 100% 100% 100% Retention Lease VIC/RL17 Licence VIC/P74 ▪ West Seahorse Field Lice
Slide 41: Development & Exploration Opportunities
Development & Exploration Opportunities VIC/RL17 Retention Lease Award Date: November 2021 Current Status Stake: 100% (Concession Operator) 2C Oil Resources: 8.0 MMbbls • VIC/RL17: Retention Lease application for VIC/L31 Water depth: <50 m Production Licence submitted on 4 December 2018. On 5 Novemb
Slide 42: Financial Performance
Part 9 Financial Performance 42 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 43: Continuous Improvements & Key Performance Metrics
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 production enhancement projects As we undertake high capital expenditure projects whi
Slide 44: EBITDA – Boosted by Recently Acquired Assets
EBITDA – Boosted by Recently Acquired Assets 500 450 400 350 300 250 EBITDA, RM 'million 200 150 100 50 0 -50 One-off provision for -100 impairment of our One-off provision for impairment of our Australian assets -150 Australian assets amounting to RM183.5m amounting to RM44.9m -200 -250 1Q 2Q 3Q 4Q
Slide 45: 4Q FY2022 Operating Segment Financials
4Q FY2022 Operating Segment Financials (I) Group P&L by Segment Malaysia – Kinabalu Subtotal Malaysia Total and others United 1 RM’000 CAA Vietnam (PHSB – North Australia Others (HPB Kingdom Kinabalu Others Group) Sabah Group) Revenue 179,806 5,280 259,403 - 444,489 316,040 106,790 - 1,048 868,367 G
Slide 46: Strong and Consistent EBITDA Margins
Strong and Consistent EBITDA Margins 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
Slide 47: Highlights from the Group’s Balance Sheet
Highlights from the Group’s Balance Sheet As at As at As at As at As at RM 30 June 2022 31 March 2022 31 Dec 2021 30 Sept 2021 30 June 2021 Total assets 5,508.9m 4,506.8m 3,099.6m 2,880.4m 2,788.0m Shareholders’ funds 2,160.5m 1,874.2m 1,553.0m 1,529.5m 1,473.9m Cash and bank balances 707.8m 437.8m
Slide 48: Key Messages
Part 10 Key Messages 48 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 49: Key Messages
Key Messages Fully Operated and Producing Portfolio Fulfils Expectations and Meets Group’s FY2022 Targets • Sold 1.4 MMbbl of oil and condensate and over 590,000 boe of gas in the current quarter from our producing assets • Achieved expectations for FY2022 selling a total of 4.6 MMboe of oil, conden
Slide 50: Appendix
Appendix • Views of Analysts • Reserves and Resources Classification • Profiles: Board of Directors and Key Management 50 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 51: Views of Analysts
Views of Analysts 51 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 52: Reserves and Resources Classification
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
Slide 53: Profiles: Board of Directors
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 Holding
Slide 54: Profiles: Board of Directors
Profiles: Board of Directors 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 c
Slide 55: Profiles: Key Management
Profiles: Key Management Yip Chee Yeong, Chief Financial Officer • Joined Hibiscus in November 2013; previously VP Finance & Group Controller in Hibiscus. • Has over 27 years of accounting and finance experience in various industries, namely oil and gas, manufacturing, technology, services, risk con
Slide 56: Profiles: Key Management
Profiles: Key Management Joyce Vasudevan, Head, Corporate Finance • Joined Hibiscus in January 2011. • Over 30 years of experience in audit, corporate finance, finance, business planning, operations planning, fund raising, investor relations, media relations, strategy development. • Previously worke
Slide 57: Profiles: Key Management
Profiles: Key Management Syarifah Aliza Syed Azauddin, VP Corporate Governance • Joined Hibiscus in September 2011; previously Senior General Manager, Corporate Finance, Secretarial and Regulatory Compliance prior to commencing current role. • Over 25 years experience in various areas of corporate f
Slide 58: Contact Investor Relations Team
Contact For more information please contact: Investor Relations Team [email protected] 58 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Hibiscus Petroleum Berhad — Investor Presentation (October 2022) on 6ix