KUALA LUMPUR (Aug 28): Hibiscus Petroleum Bhd's (KL:HIBISCS) fourth-quarter net profit more than doubled, helped by stronger realised oil and gas prices under its PM3 commercial arrangement area (PM3 CAA) production-sharing contract (PSC) and a solid operating performance across its Malaysian assets.

Net profit rose 155.6% to RM190.72 million in the three months ended June 30, 3036 (4QFY2026) from RM74.61 million a year earlier. Earnings per share increased to 25.86 sen from 10.12 sen.

Revenue for the quarter climbed 34.5% to RM846.46 million from RM629.51 million a year ago.

Hibiscus’ 35% interest in the PM3 CAA PSC, located in the area between Malaysia and Vietnam, contributed RM264.3 million, or about a third of group revenue, in the latest quarter. Average realised prices rose to US$133.35 (RM537.25) per barrel for crude oil and US$7.48 per thousand standard cubic feet (Mscf) for gas.

In a bourse filing on Friday, the oil and gas producer said it sold 2.5 million barrels of oil equivalent (MMboe) in 4QFY2026, comprising 1.4 MMbbls of crude oil and condensate and 6,965 million standard cubic feet (MMscf) of gas. Average net production stood at 26,769 barrels of oil equivalent (boe) per day.

Hibiscus declared a fourth interim dividend of two sen per share, payable on Oct 22. It also resolved to recommend a final dividend of one sen. Total dividends expected for the financial year ended June 30, 2026 (FY2026) stand at 10 sen per share — the group’s highest annual payout.

For FY2027, Hibiscus said it targets to declare a minimum total dividend of 10 sen per share if oil prices are between US$75 per barrel to US$80 per barrel and 11 sen if oil prices exceed US$80 per barrel.

For the full FY2026, net profit more than tripled to RM361.27 million from RM117.5 million in the previous financial year, while revenue was broadly unchanged at RM2.34 billion from RM2.33 billion.

Sabah operations were the largest contributor to annual earnings, generating RM184.57 million in net profit, followed by Peninsular Malaysia at RM118.49 million.

Hibiscus said its North Sabah PSC generated RM434.4 million in gross profit in FY2026, with a margin of 71.9%, supported by a favourable operating performance. Average realised crude oil prices there were US$83.05 per barrel.

The group sold 9.3 MMboe in FY2026, within its guidance range of 9-9.4 MMboe. For FY2027, it expects sales to rise to 10.7-11.2 MMboe.

Hibiscus said it remained profitable despite fluctuations in crude prices, with average unit production costs across its producing assets staying below realised oil prices.

“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. These efforts will also support continued healthy earnings before interest, taxes, depreciation and amortisation," it added.

The board has approved a new 2030 Mission, dubbed “Hibiscus 3.0”, targeting net production of 70,000 boe per day and proved and probable (2P) oil reserves of 150 MMboe.

Under the strategy, Hibiscus plans to diversify beyond its core oil and gas business into energy transition projects, including medium-scale power generation. The group said the move would support the Malaysian government’s 13th Malaysia Plan and its goal of building a more sustainable energy future.

"We are continuing discussions with potential strategic investors to secure an optimum commercial proposal and advance towards our 2030 Mission," it added.

At Friday’s midday break, Hibiscus shares were three sen or 1.44% lower at RM2.05, valuing the group at RM1.51 billion. The stock has gained 35.76% so far this year.