KUALA LUMPUR (May 22): Oil and gas producer Hibiscus Petroleum Bhd (KL:HIBISCS) swung to a net profit for the third quarter ended March 31, 2026 (3QFY2026) in the absence of a RM167.3 million one-off, non-cash deferred tax charge tied to the United Kingdom’s Energy Profits Levy (EPL) recognised in the corresponding quarter last year.

In a filing on Bursa Malaysia, Hibiscus said it posted a net profit of RM80.11 million, reversing a net loss of RM115.97 million a year earlier. However, revenue for the three-month period fell by 9.6% to RM517.76 million from RM572.8 million in the previous year, due to weaker commodity prices and lower offtake volumes across its Malaysian assets.

PM3 Commercial Arrangement Area production sharing contract (PM3 CAA), the group’s largest revenue contributor, generated RM188.4 million in the quarter. Production was mostly stable but was disrupted by a five-day shutdown at the BOC platform due to a communication failure and by bad weather, which reduced maintenance activity.

Operating costs stayed low at US$11.22 per barrel because less work was carried out during the period.

The group has a 35% stake in the PM3 Commercial Arrangement Area production sharing contract (PM3 CAA) oil and gas block in the Malaysia–Vietnam offshore area, held through two subsidiaries.

Its Anasuria Cluster in the UK provided some cushion to the group’s overall revenue decline, as it returned to meaningful production and offtake following the resolution of the Cook field leakage and floating production storage and offloading operational issues.

Hibiscus said it remains on track to sell approximately 9.3 mmboe for FY2026, up from 8.9 mmboe in FY2025, having sold 2.3 mmboe in 3QFY2026 alone and 6.7 MMboe cumulatively for the nine months (9MFY2026).

It added that the board has approved a new 2030 Mission, dubbed as “Hibiscus 3.0”, which is targeting net production of 70,000 boe per day and 2P Reserves of 150 mmboe.

This is above the current 2026 mission target of net 35,000 boe per day. The group also said it intends to diversify into energy transition projects, specifically medium-scale power generation, in support of the Malaysian government’s 13th Malaysia Plan.

The group holds a 65% stake in the PKNB Cluster PSC, which includes four gas fields: Pertang, Kenarong, Noring, and Bedong, located offshore the east coast of Peninsular Malaysia.

The company plans to develop the project in two phases to better manage costs. Phase 1 will focus on the Pertang and Kenarong fields, with a final investment decision expected in 2026. Once approved, the resources from these fields will be upgraded from contingent resources to proven reserves.

The group declared a third single-tier interim dividend of three sen per share, payable on July 17.

Earnings per share for the quarter came to 10.86 sen, against a loss of 15.40 sen a year ago.

On the volatility of oil prices due to geopolitical tensions, Hibiscus said it has historically navigated oil price cycles and still managed to keep profitability, though it is still monitoring the daily external macroeconomic factors that would affect their performance.

“The careful management of costs to maintain low operational expenditure and the successful execution of production enhancement projects are, therefore, key towards achieving low unit production costs and the delivery of a continued healthy Ebitda,” said the group in the filing.

Hibiscus Petroleum’s shares were up by four sen or 1.95% to RM2.09 on Friday’s noon break. At its last price, it had a market capitalisation of RM1.54 billion.