20th Aug 2019 17:20
(Alliance News) - Polo Resources Ltd on Tuesday said investee firm Hibiscus Petroleum Berhad posted a recent annual profit rise.
Shares in Polo Resources closed down 9.6% at 3.00 pence in London.
Polo holds an 8.8% stake in Hibiscus, which posted a 13% increase in profit after tax to MYR230.0 million or approximately USD55 million for its year ended June 30. Hibiscus's earnings before interest, taxes, depreciation and amortisation rose 64% to MYR549.4 million.
Polo said of Hibiscus: "The significant improvement in overall group performance compared to financial 2018 was attributable to the contribution from the Malaysian North Sabah asset. This was the first full year that the Malaysian asset was under the group's operatorship. In addition, there was higher overall production from the Anasuria Cluster in the UK."
Hibiscus sold around 3.3 million barrels of crude oil in its financial year, exceeding its 2.7 million to 3.0 million barrel target. Hibiscus also established a dividend policy.
Hibiscus Managing Director Kenneth Pereira said: "Our asset teams from both North Sabah and the Anasuria Cluster are progressing through an exciting capital expenditure programme to drill a total of nine wells in the 2019 calendar year; two wells in the UK and a further seven in Malaysia.
Pereira added: "Additionally, we have commenced the evaluation of options to develop the Marigold and Sunflower discovered oilfields in the UK, which hold significant potential to drive future earnings growth. We look forward to safely delivering all our projects and enhancing value for our shareholders."
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