Hibiscus Petroleum Bhd: Return to Profit on Strong Oil Price Momentum
KUALA LUMPUR, 22 May 2026 – Hibiscus Petroleum Bhd (KL:HIBISCS) has reversed a year‑ago loss to report a net profit of RM80.11 million for the third quarter ended 31 March 2026, a turnaround driven primarily by higher realised oil prices and favourable market conditions.
Financial Highlights
| Item | 3Q FY26 | 3Q FY25 | YoY % Change |
|---|---|---|---|
| Net profit | RM80.11 m | (RM115.97 m) | +169 % |
| Revenue | RM517.76 m | RM572.80 m | –9.6 % |
| Earnings per share | 10.86 sen | (15.4 sen) | +179 % |
| Average realised oil & condensate price | US$76.7/bbl | — | +12 % QoQ |
The quarter’s performance was bolstered by an average realised price of US$76.7 per barrel, reflecting a 12 % rise from the previous quarter. This uplift in oil pricing offsets a decline in offtake volumes and lower commodity prices that contributed to the revenue dip.
Dividend Outlook
Hibiscus declared its third interim single‑tier dividend of three sen per share, scheduled for payment on 17 July 2026. The dividend policy aligns with the company’s cash‑flow trajectory, which is expected to remain robust into the fourth quarter of FY 2026.
Market Context
The company’s profitability is a direct consequence of the recent surge in crude oil prices. In the first nine months of FY 2026, revenue fell 12.2 % year‑on‑year to RM1.495 billion, yet net profit rose 297 % to RM1.705 billion, underscoring the resilience of its core operations. The upward trajectory in oil prices is anticipated to persist, with the group projecting continued growth in the final quarter, supported by the operational ramp‑up of the Brunei LPC project and a projected annual production target of 900,000–940,000 barrels of oil equivalent.
Strategic Implications
- Cash‑flow Strength: The return to profit and favourable realised prices enhance the firm’s liquidity position, enabling further capital allocation to exploration and production initiatives without diluting equity.
- Dividend Sustainability: The interim dividend reflects confidence in sustained earnings, potentially strengthening investor sentiment and providing a tangible return to shareholders.
- Operational Momentum: Production volumes for the first nine months reached 6.7 million barrels of oil equivalent, moving steadily toward the FY 2026 target, indicating that operational execution is on track.
Forward‑looking Perspective
With the global energy market stabilising and oil prices remaining robust, Hibiscus Petroleum is positioned to maintain its profit momentum. Management’s emphasis on disciplined cost management and the exploitation of premium pricing environments suggests that the company can continue to deliver shareholder value while pursuing growth in its core Malaysian assets and overseas projects.
