22nd Nov 2019 14:44
(Alliance News) - Natural resources investment firm Polo Resources Ltd on Thursday noted the release of Malaysian oil & gas firm Hibiscus Petroleum Bhd's first-quarter results, as well as its targets for the future.
For the three months to the end of September, Hibiscus, in which Polo holds an 8.8% stake, reported earnings before interest, taxes, depreciation and amortisation of MYR77.1 million, around GBP14.4 million, a sharp 63% fall from MYR209.2 million the same period the year before.
This was on revenue that more than halved year-on-year to MYR159.3 million from MYR360.0 million. Hibiscus attributed the weaker performance to a softer oil market and higher maintenance activities.
However, net asset value per share as at September 30 increased by 13% to 79 sen per share, from 70 sen the prior year. Total assets increased by 15% to MYR2.55 billion from MYR2.22 billion.
Looking ahead, for its financial year ending June 2020, Hibiscus is targeting the delivery of 3.3 million to 3.5 million of oil, which is up to 16% higher from the oil delivered the year before.
Hibiscus said it still aims to achieve its goal of producing 20,000 barrels of oil per day by the 2021 financial year.
To achieve this, the company will look to develop the Anasuria asset in the UK North Sea so it can produce 5,000 barrels per day, and the North Sabah asset offshore Malaysia to deliver 7,000 barrels per day, both by 2021.
In addition, Hibiscus has maintained its target for the final field development plan for the Marigold development in the UK North Sea to be secured by the end of 2020.
"We have clearly established our 2021 Mission and the group as a whole is actively working towards achieving it. By 2021, existing assets are expected to deliver 12,000 barrels of net oil per day. We will close the gap with an acquisition. We will be extremely selective and will only invest in assets that we believe will generate strong positive cashflows," said Hibiscus Managing Director Kenneth Pereira.
Shares in Polo Resources - which is headquartered in Sandton, South Africa - were down 2.4% at 3.63 pence on Friday in London.
By Dayo Laniyan; [email protected]
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