Hibiscus 3QFY20 earnings hit by lower oil prices

By TMR / Credit Pic Hibiscus Petroleum

HIBISCUS Petroleum Bhd’s earnings plunged 48.4% to RM28.47 million for the third quarter ended March 31, 2020 (3QFY20), from RM55.18 million a year ago, partly due to low average crude oil prices.

Revenue for the period declined 22.2% year-on-year to RM175.86 million, its filing to Bursa Malaysia yesterday showed.

The firm delivered 2.4 million barrels of oil in the nine months ended March 31, with the FY production target maintained at 3.2 million barrels.

To mitigate crude oil price downside risk for the rest of 2020, the group has locked in future sales of 750,000 barrels at an average price of US$35 (RM154) per barrel at North Sabah.

Given prevailing low oil prices, the group is also reviewing the offtake schedule for 4QFY20 and 1QFY21 to consider taking advantage of potentially higher oil prices in future quarters.