Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (October 2024)
54 slides from Hibiscus Petroleum Bhd's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
INVESTOR PRESENTATION OCTOBER 2024 www.hibiscuspetroleum.com 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: Hibiscus at a Glance
HIBISCUS AT A GLANCE Malaysia’s first listed independent E&P Company 5 5 28,777 boe/day USD 27 /boe 77.8 MMboe 121.1 MMboe Producing assets Development opportunities Net production rate¹ Net OPEX¹ Net 2P Reserves² Net 2C Resources² ¹Figures for FY2024, inclusive of Brunei production ~75% of 2P reser
Slide 4: Shareholder Return
SHAREHOLDER RETURN Increasing dividend trend with share buy-backs Capitalising on undervaluation via share buy-backs 27.5m Share buy-backs since Dec 2023 RM 2.23 Average share price *FY2021A to FY2023A dividend yield is based on the share price as of the last trading day of the corresponding FY *FY2
Slide 5: Shareholding Details
SHAREHOLDING DETAILS Highly liquid stock with a strong institutional following Highly liquid and actively traded counter Strong Institutional following4 RM 1.83b 777.5m Market cap1 Total number of outstanding shares in issue1 Institutional + Retail Investors Corporate Holdings 34.0% 55.9% 78% 3.24m
Slide 6: Leadership Team
LEADERSHIP TEAM Board of Directors Zainul Rahim bin Dr Kenneth Dato’ Sri Roushan Thomas Michael Dato’ Dr Zaha Rina Emeliana Dallan Zaidah binti Ibrahim Mohd Zain Gerard Pereira Arumugam Taylor binti Zahari Rice-Oxley Independent Non- Non-Independent Non- Managing Director Non-Independent Non- Senior
Slide 7: Our Assets
@ Hisiscus Petroleum
Slide 8: Current Portfolio of Reserves
CURRENT PORTFOLIO OF RESERVES Hibiscus is the operator for all the producing assets Block 46 Cai Nuoc Net 2P Oil Reserves Anasuria Cluster 70% 51.5 50%^ 2P Oil 0.2 MMbbl 2P Oil 15.9 MMbbl | 2P Gas 0.9 MMboe Block B MLJ Fyne 37.5% 2P Oil 3.2 MMbbl | 2P Gas 17.2 MMboe 42.5% 2C Oil 1.0 MMbbl | 2C Gas 5
Slide 9: Replenishment Record
REPLENISHMENT RECORD Successful reserves replacement, strong IRRs, & short payback periods Asset Replenishment Record (MMboe) Anasuria Peninsula North Sabah Cluster Hibiscus 29 2016 2018 2022 Internal Rate of 689% Total Net 298% 96% Return (IRR) 81 Production 77.8 Payback Period < 1 year < 1 year 3
Slide 10: Producing Asset Licence Tenures
PRODUCING ASSET LICENCE TENURES Net 2P oil and gas reserves to last up until 2040 with ongoing discussions to extend licence tenures 2P Oil 2P Gas Name of Asset Country (MMbbl) (MMboe) 2020 2025 2030 2035 2040 2045 North Sabah PSC Malaysia 18.4 - Kinabalu PSC Malaysia 6.4 - Malaysia-Vietnam PM3 CAA
Slide 11: Operational Metrics
OPERATIONAL METRICS Production and sales have risen through a series of strategic acquisitions Net Oil Production and Sales (MMbbl) Net Gas Sold (MMscf) Steady growth in net oil and condensate production and sales driven by Strong uptick in gas sales post acquisition of PM3 CAA PSC in January strate
Slide 12: Asset Enhancement Record
ASSET ENHANCEMENT RECORD Skilled in stabilising and increasing production rate post-acquisition NORTH SABAH PENINSULA Previous Operator Hibiscus Previous Operator Hibiscus 94% 97% 96% 25 90% 91% 92% 92% 93% 92% 90% 91% 89% 100 93% 95% 86% 92% Gross Production (kboe/d) 88% Gross Production (kbbl/d) 2
Slide 13: Received Awards and Recognitions in FY2024
RECEIVED 20 AWARDS AND RECOGNITIONS IN FY2024 For safety, project delivery and excellence Focused Recognition from PETRONAS Malaysia Upstream Awards 2024 GOLD Award for Project Delivery High commitment excellent Production towards Enhancement and Idle Well Reactivation activities GOLD Award fo
Slide 14: Growth Plan
GROWTH PLAN 8 Hipiscus Petroleum
Slide 15: Emerging as a Significant E&P Player in the Region
EMERGING AS A SIGNIFICANT E&P PLAYER IN THE REGION Close to achieving our 2026 net production target Develop Convert development assets to Enhance Enhance output and extend Acquire Potential acquisition of producing producing assets economic life of producing fields assets and new licenses Net Produ
Slide 16: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Guiding principles assuming USD70 bbl Brent, selective and disciplined deployment CASHFLOW WATERFALL KEY PRINCIPLES CONTROL LEVERS Priority Spend Investment Criteria 1 Debt Servicing Target Criteria Funding Work program & 2 Minimum Annual Dividend IRR ≥ 15% Internal cash
Slide 17: Deploying CAPEX
DEPLOYING CAPEX Funded by operating cash flow, cash balance, and existing debt facilities CAPEX (USD m) Asset Key Highlights FY2025 FY2026 UK: Teal West Teal West Development 88 29 Malaysia-Vietnam: PM3 CAA Bunga Aster Appraisal Well + Exploration Wells 47 40 Malaysia: North Sabah SF30 Waterflood Ph
Slide 18: Hibiscus Entry into Brunei
HIBISCUS ENTRY INTO BRUNEI Acquisition of Block B Maharajalela Jamalulalam (MLJ) Field MLJ1 MLJ2 Platform Acquisition & Asset Overview Platform A 100% acquisition of TotalEnergies EP (Brunei) – which holds a 37.5% stake in Block B MLJ Field MLJ3 Platform Block B MLJ is a producing and cash gener
Slide 19: Gas Portfolio Is Materially Enhanced
GAS PORTFOLIO IS MATERIALLY ENHANCED Reaching gas production portfolio of ~50% Gas is a lower emission, transition fuel, which is playing an increasingly major role in the ongoing energy transition Daily Production Rate (% of boe) Before Repsol Acquisition CY2021 CY2023 After Brunei Acquisition 3% 3
Slide 20: Hibiscus First Direct Award of a PSC
HIBISCUS FIRST DIRECT AWARD OF A PSC Award boosts gas infrastructure utilisation to meet growing Peninsular demand Overview Awarded a 65% participating interest (PI) and operatorship in PKNB Cluster PSC by PETRONAS Remaining share is held by Petronas Carigali Sdn Bhd Effective date of the PSC
Slide 21: PM327 PSC Farm-In
PM327 PSC FARM-IN One of the largest exploration blocks offshore Peninsular Malaysia Overview Signed a farm-in arrangement with Petronas Carigali Sdn Bhd for 30% interest, pending regulatory PM3 CAA PM3 CAA approvals and fulfilment of conditions precedent Offered as part of the Malaysia Bid Roun
Slide 22: ESG Initiatives
e IBISCUS ESG INITIATIVES Ge revere iad, |
Slide 23: Our ESG Pillars
OUR ESG PILLARS Alignment with the United Nations’ Sustainable Development Goals (UN SDG) ENVIRONMENTAL SOCIAL GOVERNANCE Occupational Safety Zero Fatality and zero Lost Time Portfolio Resilience Injury Frequency Strong Risk Management Increasing Natural Gas Reserves Constituent of FTSE4Good Bursa M
Slide 24: Towards Net Zero 2050
TOWARDS NET ZERO 2050 Target to reduce 50% of GHG Scope 1 and 2 Emissions by FY2030 In Malaysia and Vietnam, emissions reduction being addressed both in PM3 - CAA area and in North Sabah Membrane Phase 1 Membrane Phase 2 Flare tip replacement and - 20% other Initiatives Membrane Fuel Cell, Debottl
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS HiBiscu
Slide 26: Segmental P&L Highlights
SEGMENTAL P&L HIGHLIGHTS Consistent annual and sequential growth in topline and profitability Revenue (RM million) EBITDA (RM million) 746.6 738.0 393.0 627.5 326.5 325.3 603.5 300.2 302.6 503.6 1,321.1 1,269.7 1,082.7 2,715.7 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 2,344.8 4QFY23 1QFY24 2QFY24 3QFY24 4Q
Slide 27: Balance Sheet Overview
BALANCE SHEET OVERVIEW Robust balance sheet on the back of growing unrestricted cash balance and total assets Total Assets and Shareholders’ Funds (RM million) Unrestricted cash and Total Debt (RM million) Total Assets and Shareholders’ Funds expanded on the Healthy net cash position to support CAPE
Slide 28: Strong and Consistent EBITDA Margins
STRONG AND CONSISTENT EBITDA MARGINS • Proven track record in navigating downturns • Operational control over assets gives us flexibility to adapt expenditures PENINSULA NORTH SABAH ANASURIA 90 120 100% 120 100% 100% 80 90% 90% 90% 112 100 100 70 77 78 80% 80% 80% 98 97 95 97 97 70% 93 94 70% 92 70%
Slide 29: Group Performance
GROUP PERFORMANCE Multifold growth since 2016 SPAC: 2011 Anasuria: March 2016 Peninsula Hibiscus: January 2022 North Sabah: March 2018 Brunei: October 2024 121 ↑ 17.3x 2C Resources (MMbbl) 78 ↑ 2.9x 2P Reserves (MMboe) 27 Daily production (kboe) 29 ↑ 7.2x 7 4 FY2011 FY2013 FY2016 FY2017 FY2018 FY201
Slide 30: Peer Comparison
PEER COMPARISON
Slide 31: Performance of Hibiscus vs Peers
PERFORMANCE OF HIBISCUS VS PEERS – 1 Hibiscus outperformed the peer average over the past 5 years EBITDA Margin 5-Year Revenue CAGR Blue Peer Average Red Hibiscus 64% 54% 49% 47% 33% 22% 51% 47% 42% 34% 27% Net Profit Margin 38% 13% 17% 17% 13% -8% 1% 4% -5% 1% -56% Return on Equity 36% 8% 16% 16% -
Slide 32: Performance of Hibiscus vs Peers – Valuations
PERFORMANCE OF HIBISCUS VS PEERS – 2 But we lag behind in valuations EV/EBITDA Multiple P/E Multiple 8.1 2.6 3.6 1.1 Hibiscus Peer Average Hibiscus Peer Average Source: Bloomberg as at 23 October 2024 | Trailing 12-month basis | Hibiscus figures were computed using actual results 32
Slide 33: Investment Merits
INVESTMENT MERITS Growth target supported by untapped resources and strong capital position to support development Growth Strategy to hit 35,000 boe/day daily production rate by 2026 Operation Track record of operational excellence, skilled in continuously enhancing efficiencies of current assets Ca
Slide 34: Thank You
THANK YOU For more information, please contact [email protected]
Slide 35: Robust O&G Sector Outlook with Growing Demand
ROBUST O&G SECTOR OUTLOOK WITH GROWING DEMAND Tight O&G supply expected to keep prices firm LIQUIDS SUPPLY FROM PRODUCING WELLS AND DEVELOPMENTS* VS TOTAL LIQUIDS DEMAND (mb/d) Seasonal (Other liquids) Producing (non-shale) Producing (shale) Under development offshore Under development onshore 140 1
Slide 36: Brent Forecasts in Line with Long Term O&G Needs
BRENT FORECASTS IN LINE WITH LONG TERM O&G NEEDS Oil prices projected to remain elevated according to EIA; supports RPS Energy’s Assumptions BRENT FORECASTS 2024 – 2039 (USD) 100.00 95.00 90.00 85.00 80.00 75.00 70.00 65.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2
Slide 37: Overview of PM3 CAA PSC
OVERVIEW OF PM3 CAA PSC A low-cost producing asset with long production history; possesses material future developments PM3 CAA 7 1997 2027 Producing fields Production Start Date PSC expiry Kinabalu 2 3.1 MMbbl 49.0 Bscf Exploration fields Net 2P Oil Reserves Net 2P Gas Reserves North Sabah Ownershi
Slide 38: PM3 CAA PSC
PM3 CAA PSC Stable gas lift operations and successful well work activities PM3 CAA Average Net Oil and Gas Production Rate (boe/day) Bunga Aster-1 Drilling • First oil achieved on 4 May 2024. Sustained oil production from the H4 reservoir, stable gas lift operations, and • Potential oil column of up
Slide 39: Overview of Kinabalu PSC
OVERVIEW OF KINABALU PSC Low-cost liquids producing asset with ongoing redevelopment projects; close proximity with North Sabah PM3 CAA 3 1997 2032 6.4 MMbbl Kinabalu Producing fields Production Start Date PSC expiry Net 2P Oil Reserves North Sabah Ownership Structure Off-taker PETRONAS Carigali Vie
Slide 40: Kinabalu PSC
KINABALU PSC Successful infill drilling programme PM3 CAA Average Net Oil Production Rate (bbl/day) KNWD-18 (First Oil in Aug 2023) and KNWD-08ST1 (First Oil in Oct 2023) infill wells producing well above targets Kinabalu 4,102 North Sabah 3,132 2,967 2,704 Vietnam United Kingdom Australia 1QFY24 2Q
Slide 41: Overview of North Sabah PSC
OVERVIEW OF NORTH SABAH PSC Asset includes the Labuan Crude Oil Terminal which processes 50K oil barrels per day PM3 CAA 4 1979 2040 Producing fields Production Start Date PSC expiry Kinabalu 18.4 MMbbl 8.9 MMbbl Net 2P Oil Reserves Net 2C Oil Resources North Sabah Ownership Structure Off-taker Viet
Slide 42: North Sabah PSC
NORTH SABAH PSC Completion of near-field drilling campaign at South Furious PM3 CAA Average Net Oil Production Rate (bbl/day) Near-Field Drilling Campaign South Furious Ungu Well Kinabalu • Lab analysis on collected hydrocarbon sample for South Furious Ungu is expected to be completed by early 2025.
Slide 43: Overview of Block 46 Cai Nuoc PSC
OVERVIEW OF BLOCK 46 CAI NUOC PSC Producing field is tied back to PM3 CAA’s facilities with potential to unlock undeveloped Hao Mai field PM3 CAA 1 2003 2027 Producing field Production Start Date PSC expiry Kinabalu 1 0.2 MMbbl Development field Net 2P Oil Reserves North Sabah Ownership Structure Of
Slide 44: Overview of Anasuria Cluster
OVERVIEW OF ANASURIA CLUSTER Prominent location in the North Sea PM3 CAA 4 1996 2035 15.9 MMbbl Kinabalu Producing fields Production Start Date Economic Life Net 2P Oil Reserves North Sabah Effective Ownership Marketing Agreement with Hibiscus’ Asset Name Asset Type Vietnam Stake Guillemot A Produci
Slide 45: Further Opportunities at the Anasuria Cluster
FURTHER OPPORTUNITIES AT THE ANASURIA CUSTER Strong growth opportunities through our 100% owned development asset – Teal West PM3 CAA Exciting Tie back opportunity in Teal West Kinabalu July Sep North Sabah 2023 2023 Environmental Final Investment Statement (ES) Decision (FID) Vietnam was approved w
Slide 46: Potential Game Changer Development Assets in the UK
POTENTIAL GAME CHANGER DEVELOPMENT ASSETS IN THE UK Marigold and Sunflower fields – First oil expected in 2028 PM3 CAA Future Opportunities around Marigold: Marigold Asset Kildrummy and Crown Discoveries Marigold and Sunflower are located Kinabalu north-east of Aberdeen, UK Ithaca Energy 30% Direct
Slide 47: Anasuria Cluster
ANASURIA CLUSTER Teal West to produce First Oil by end-CY2025 PM3 CAA Average Net Oil and Gas Production Rate (boe/day) Teal West • Subsea tie-back installation Kinabalu 2,315 2,220 expected in second-half of 2,119 CY2025. 1,912 • First Oil scheduled for end- North Sabah CY2025. 2,054 Vietnam 1,970
Slide 48: Overview of Australia Assets
OVERVIEW OF AUSTRALIA ASSETS Exposure to the prolific O&G producing province – Bass Strait PM3 CAA Key Highlights Ownership Structure Direct Interest 2013 2026 Kinabalu Direct Award Date Licence Expiry Interest North Sabah 8.0 MMbbl 100.0% Hibiscus Net 2C Oil Reserves Vietnam VIC/P79 WA/527-P T/49P
Slide 49: 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 Standard Chartered Saadiq Berhad and the Malaysian Dutch Business Council. • Previously Board member of UKM Holdings Sdn Bhd, Bank Pemb
Slide 50: Profiles: Board of Directors
PROFILES: BOARD OF DIRECTORS Dato’ Dr Zaha Rina Zahari, Independent Non-Executive Director • Appointed to the Board in September 2017. • More than 34 years of experience in financial (including Islamic), commodities and securities industry and the developing of the Malaysian Financial Market, M&A in
Slide 51: 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 29 years of accounting and finance experience in various industries, namely oil and gas, manufacturing, technology, services, risk con
Slide 52: Profiles: Key Management
PROFILES: KEY MANAGEMENT Kevin Robinson, VP Project Assurance & Asset Oversight • Joined Hibiscus in April 2019. • Over 45 years of experience in Upstream Oil and Gas mainly in Exploration, Development, New Ventures and Management. • Previously worked at Sapura E&P and Newfield Asia Pacific as Vice
Slide 53: Profiles: Key Management
PROFILES: KEY MANAGEMENT Stewart McMickle, VP New Ventures • Joined Hibiscus in March 2023. • Over 32 years’ experience in the oil and gas industry involving upstream business analysis, LNG and gas marketing, business development and acquisition/divestment of oil and gas properties. Early career spe
Slide 54: Profiles: Key Management
PROFILES: KEY MANAGEMENT Lily Ling, VP Corporate Development • Joined Hibiscus in January 2020. • Has 20 years of diversified experience in investment banking, corporate finance, investor relations, consulting, corporate communications, finance and audit. • Previously with Sapura Energy Berhad, wher
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