Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Investor Presentation (August 2024)
52 slides from Hibiscus Petroleum Bhd's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
INVESTOR PRESENTATION Logo AUGUST 2024 www.hibiscuspetroleum.com 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 4 5 21,096 boe/day USD 19 /boe 60.9 MMboe 59.1 MMbbl Producing assets Development opportunities Net production rate¹ Net OPEX¹ Net 2P Reserves² Net 2C Resources² ¹Figures for 3QFY2024 ²Figures are as of 1 January 2024 2P: 21.4 MMbo
Slide 4: Shareholder Return
SHAREHOLDER RETURN Increasing dividend trend with share buy-backs Implied dividend yield of 3.2% for FY2024 3.2 10 3 9 2.5 8 2.5 2.2 Capitalising on undervaluation via share buy-backs 7.50 7 2 1.7 6.25 6 1.5 5.00 5 4 10.3m RM 2.45 1 3.75 Share buy-backs Maiden 3 Average share price since Dec 2023 di
Slide 5: Shareholding Details
SHAREHOLDING DETAILS Highly liquid stock with a strong institutional following Highly liquid and actively traded counter Strong Institutional following2 RM 1.80b 795.2m Market cap1 Total number of outstanding shares in issue1 Retail Investors 30.2% Institutional + Corporate Holdings 78% 2.43m Manage
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 Anasuria Cluster 50%^ 2P Oil 16.2 MMbbl | 2P Gas 0.9 MMboe Net 2P Oil Reserves Fyne 42.5% 2C Oil 4.0 MMbbl Teal West 70% Block 46 Cai Nuoc 2P Oil 0.2 MMbbl 49.9 100% 2P Oil 4.3 MMbbl MMbbl 19.3% Blocks 21/19c & 21/20
Slide 9: Replenishment Record
REPLENISHMENT RECORD Successful reserves replacement, strong IRRs, & short payback periods Acquisition Record Asset Replenishment Record (MMboe) Anasuria Peninsula North Sabah Cluster Hibiscus 2016 2018 2022 25 Internal Rate of 689% 298% 63% Return (IRR) 61 Total Net Production Payback Period < 1 ye
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 18.8 - Kinabalu PSC Malaysia 7.1 - 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: Growth Plan
GROWTH PLAN 8 Hieiscus Petroleum
Slide 14: 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 74% of 2P
Slide 15: Deploying CAPEX
DEPLOYING CAPEX Asset monetisation and potential acquisitions of producing assets CAPEX (US$ m) Asset Key Highlights FY2024 FY2025 UK: Teal West Development: Teal West 18 80 UK: Anasuria Upgrade: FPSO facility 14 10 MY: Kinabalu Development: KNWD-18 well 48 18 MY-VT: PM3 CAA Exploration: Bunga Aster
Slide 16: Hibiscus Entry into Brunei
HIBISCUS ENTRY INTO BRUNEI Proposed Acquisition of Block B Maharajalela Jamalulalam (MLJ) Field Acquisition & Asset Overview FAIR DEAL VALUATION BOOSTS RESERVES AND % OF GAS ▪ Consideration of USD259.4m, supported by ▪ Increases reserves and production by 36% & ➢ A 100% acquisition of fundamentals a
Slide 17: Hibiscus First Direct Award of a PSC
HIBISCUS FIRST DIRECT AWARD OF A PSC Award Boosts Gas Infrastructure Utilisation to Meet Growing Peninsula Demand PSC Overview ➢ Awarded a 65% participating interest (PI) and operatorship in a PSC by PETRONAS. ➢ Remaining share is held by Petronas 4 fields 65-75m Pertang, Kenarong, Noring DRO Detail
Slide 18: ESG Initiatives
ESG INITIATIVES efiiciscu
Slide 19: Our ESG Pillars
OUR ESG PILLARS Alignm nt with th Unit d ations’ Sustainabl D v lopm nt Goals U 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 Malaysi
Slide 20: Towards Net Zero 2050
TOWARDS NET ZERO 2050 Target to reduce 50% of GHG Scope 1 and 2 Emissions by FY2030 Membrane Membrane Phase 1 Membrane Phase 2 Phase 3 SF Pressure Debottlenecking Maintenance project Future initiatives - 50% Scope 1 + 2 Shift in energy sources New technologies, CCUS 3.15 MMt CO₂e 1.57 MMt CO₂e FY202
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS HiBiscu
Slide 22: Segmental P&L Highlights
SEGMENTAL P&L HIGHLIGHTS Consistent annual and sequential growth in topline and profitability Revenue (RM million) EBITDA (RM million) 746.6 393.0 627.5 326.5 325.3 603.5 291.6 300.2 523.3 503.6 1,269.7 2,344.8 1,082.7 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 1,018.5 1,977.7 3QFY23 4QFY23 1QFY24 2QFY24 3Q
Slide 23: Balance Sheet Overview
BALANCE SHEET OVERVIEW Robust balance sheet on the back of growing unrestricted cash balance and total assets Total Ass ts and Shar hold rs’ Funds RM million Unrestricted cash and Total Debt (RM million) Total Ass ts and Shar hold rs’ Funds xpand d on th Healthy net cash position to support CAPEX ne
Slide 24: 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 90 100% 120 120 100% 100% 80 90% 90% 90% 85 112 100 100 70 78 80% 80% 80% 98 97 97 97 70% 93 94 70% 92 70% 60
Slide 25: Group Performance
GROUP PERFORMANCE Multifold growth since 2016 SPAC: 2011 Anasuria: March 2016 North Sabah: March 2018 Peninsula Hibiscus: January 2022 Brunei: 2024 67 ↑ 2.5x 2P Reserves 61 2P Reserves (MMboe) ↑ 9.0x increase to 82.6 MMboe 27 (+36%) Daily production (kboe) 20 ↑ 5.0x 7 4 Net daily FY2011 FY2013 FY201
Slide 26: Peer Comparison
PEER COMPARISON
Slide 27: Performance of Hibiscus vs Peers
PERFORMANCE OF HIBISCUS VS PEERS – 1 Hibiscus outperformed the peer average (10 peers) Revenue 4-Year CAGR (CY2019 – CY2023) Return on Assets 15.3% 10.9% 12.9% 8.3% 9.0% 3.8% 4.5% 5.0% Hibiscus 28% 1.1% (3.7%) Peer Avg. 2019 2020 2021 2022 2023 12% 29.6% Return on Capital Net Profit Margin (CY2019 –
Slide 28: Performance of Hibiscus vs Peers - 2
PERFORMANCE OF HIBISCUS VS PEERS – 2 Hibiscus ranked #1 in terms of its operational / solvency / liquidity metrics PRUDENT MANAGEMENT REFLECTED IN S&P CREDIT METRICS Serica Capricorn Karoon Jadestone Genel Valeura PT Medco Ithaca Company Hibiscus OKEA EnQuest PLC Energy Energy Energy Energy Energy E
Slide 29: Hibiscus' Multiples vs Peers
HIBISCUS’ MULTIPLES VS PEERS 1. Hibiscus’ EV/EBITDA and PE multiples are below the average of 10 selected global peers 2. Out of 10 peers: • Only 1 peer is trading below Hibiscus’ PE multiple • 5 peers are loss making, out of which 4 are trading at higher EV/EBITDA multiples 3. Hibiscus’ current EV/
Slide 30: Investment Merits
INVESTMENT MERITS Growth target supported by untapped resources and strong capital position to support development Growth Strategy to double daily production rate by 2026 Operation Track record of operational excellence, skilled in continuously enhancing efficiencies of current assets Capital Strong
Slide 31: Thank You
THANK YOU For more information, please contact [email protected]
Slide 32: 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 33: 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 34: Brent vs Hibiscus
BRENT VS HIBISCUS Hibiscus consistently outperformed Brent since late-2022 and expects correlation to return to normalcy NORMALISED PRICE MOVEMENT SINCE 2021 (HIBISCUS VS BRENT) Underperformed Tracked Generally Outperformed HIBI 3 Sabah BRENT Sales Tax Brunei % YoY PATAMI (ann. date) SPA Repsol Comp
Slide 35: 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 5.7 MMbbl 64.8 Bscf North Sabah Exploration fields Net 2P Oil Reserves Net 2P Gas Reserves Ownershi
Slide 36: 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 Kinabalu • Potential oil col
Slide 37: 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 7.8 MMbbl Kinabalu Producing fields Production Start Date PSC expiry Net 2P Oil Reserves North Sabah Ownership Structure Off-taker PETRONAS Vietnam Cari
Slide 38: Kinabalu PSC
KINABALU PSC Successful infill drilling programme PM3 CAA Average Net Oil Production Rate (bbl/day) Kinabalu KNWD-18 (First Oil in Aug 2023) and KNWD-08ST1 (First Oil in Oct 2023) infill wells producing well above targets 4,102 North Sabah 3,132 2,704 2,602 Vietnam United Kingdom Australia 4QFY23 1Q
Slide 39: 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 19.7 MMbbl 9.0 MMbbl North Sabah Net 2P Oil Reserves Net 2C Oil Resources Ownership Structure Off-taker Viet
Slide 40: 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 Better wells performance at the Barton and South Furious 30 fields South Furious Ungu Well Kinabalu • Lab analysis on collected hydrocarbon sampl
Slide 41: 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 North Sabah Net 2P Oil Reserves Ownership Structure Of
Slide 42: Overview of Anasuria Cluster
OVERVIEW OF ANASURIA CLUSTER Prominent location in the North Sea PM3 CAA 4 1996 2035 16.6 MMbbl Kinabalu Producing fields Production Start Date Economic Life Net 2P Oil Reserves North Sabah Effective Ownership Marketing Agreement with Hibiscus’ Vietnam Asset Name Asset Type Stake Guillemot A Produci
Slide 43: 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 44: 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 45: 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 expected in second-half of 2,489 CY2025. 2,315 • First Oil scheduled for end- North Sabah 2,220 2,119 CY2025. Vietnam 2,231 Fyne 1
Slide 46: 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 Kinabalu 2013 2026 Direct Award Date Licence Expiry Interest North Sabah 100.0% 8.0 MMbbl Hibiscus Net 2C Oil Reserves Vietnam VIC/P79 WA/527-P T/49P
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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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