Hibiscus Petroleum Berhad delivered an EBITDA of RM298.4 million and PAT of RM135.3 million, in 1Q FY2023, mainly driven by relatively high oil, condensate, and gas prices. A total of 1.0 MMbbl of oil and condensate and over 510 thousand boe of gas were sold in 1Q FY2023. The sale of oil and condensate contributed RM502.1 million to total revenue while the contribution from the sale of gas was RM101.5 million.
The relatively strong oil and gas price levels have contributed positively to the profitability levels in all the Group’s producing assets in Malaysia and the United Kingdom.
Going forward, the group remains on target to sell approximately 7.2 to 7.5 million barrels of oil equivalent of oil, condensate, and gas for FY2023. Commenting on the Group’s outlook, Managing Director, Dr Kenneth Pereira, said, “We believe that the current macro trends driving high energy prices and a strong performing US dollar will continue. Whilst a reduction in global emission levels is extremely important, we have also observed that the narrative emerging from the recent COP 27 event held in Egypt recognises that oil and gas, in particular gas, has an important role to play in the energy
transition.
In the United Kingdom, there have been certain changes announced recently by the government in respect of overall taxation levels, including those applicable to the oil and gas exploration and production sector. It should be noted that whilst the energy profit levy is being increased, corresponding investment incentives are concurrently being offered in conjunction with the increase and it is thus our intention to phase our capex plans to optimise value from these incentives. We
believe that by doing so, the impact from the tax increases will be minimised and our UKCS growth strategy can progress, albeit cautiously. It is also clear that decarbonisation initiatives within the UK oil and gas sector have been incentivised and this will encourage us to identify further opportunities that will reduce our UKCS carbon footprint. Overall, we believe that for
Hibiscus Petroleum Group, the net effect of these tax hikes will not be material and we have a positive outlook for our sector
