https://klse.i3investor.com/blogs/kianweiaritcles/158627.jsp

This analysis worth a read, and at least finally some article mentioning a clean off in account on all those on off expenses.
Sorry for those who unable to read chinese.

The writer wrote it in chinese, so nothing much i could help.

hmm, curious on which quarter DBS comparing with on the production dropped.
By the way, revenue is cap by oil tanker offload volume. It produce even higher than now also oil sold will be around the same. haah

But anasuria can produce more than the oil tanker offload volume, and where will the extra oils go? In inventory (By the way, those who claimed the inventory hikes in accound book, it is mainly contributed by north sabah).

So what make hibiscus stands out is its lean cost of sales, it drop by 7 million from last year but still this quarter is still higher than before because of following reason:
1. they have maintenance on the gas compression facility failure
2. Partially contributed by the cost of preparing the drilling campaign on coming june.

@nimitta5678, revenue of hibiscus mainly affected by 2 things, oil tank offload amount and brent oil price.

The oil tanker can only carry max (270,000 bbl to 280,000bbl), and most of the time they only offload the rough figure onto the oil tanker. (maybe till certain percentage of the maximum capability). And this quarter, anasuria offload 3600bbl less than previous quarter.
So oil tanker capability will cap maximum oil sold by anasuria. And the only way to increase the revenue can only achieved by 2 things :
1. Rise in brent price
2. Increase in USD/MYR conversion rate (remember we have stronger myr in early of this year)

Hmm? that dude being flagged again and dissapear? Anyway, he will pop out again with different name.
Europe political issue, US restart the trade war again, OPEC might wanna recover production.
Everywhere also negative now.

Anyway, this is the time investor should be happy with. Buy more in company that you think the prospect is good and have potentials

And put all aside, the oil produce by hibiscue are around 8500bbl per day now. Look at the opex for each barrel, can imagine how good the margin will be. And shell is actually one of the high standard operator that often stringent on standard and safety, hence their cost is always higher on getting oil. With hibiscus take over, the opex can even further be reduced

Hibiscus acquire sabah at a cheaper price that it what it is valued to be. Man, this is a good deal. And people complaining, funny eh

And people see negative goodwill negatively. Imagine u bought a house at 1million, and when u get the key, the price of the house rise to 1.1million. Ya, u get non cash gain, but your asset value is still increase by 100k! And when u sell it u will realize that 100k profit

@damiencyh, yes, if u remove the negative goodwills and admin cost, it is still making losses. But we have to dig in more why other expenses is so high this quarter, then u will find there is a lot of one off expenses as well which hibiscus is taking advantages to remove its burden

Time for hibiscus to move light and have all revenue making business (anasuria and north sabah) keep moving forward

Wah, if really drop to 37sen, i will laughing a d buy more. There is a lot of smokescreen in this quarter, people only concern on the one offgain but nobody care about their one off expenses. How many stuff they have amortised and depreciated fully while taking the chamce on this one off negative goodwill. In next coming quarter, the expenses will be less as they throw some burden away.

https://www.theedgemarkets.com/article/hibiscus-3q-net-profit-jumps-128-times-mainly-negative-goodwill-tax-credit

For those who care about why PAT of anasuria not that high compare to Q4 2017.

There is following one off item that make most retailers thought anasuria performance is bad:
1. Amortisation of intangible assets and depreciation of oil and gas assets of RM11.5 million; and,
2. Unwinding of discount on provision for decommissioning costs of RM3.3 million.

There's another 15 mil that should be add back up to the profit. Almost 80% compare to previous quarter.

Looks like hibiscus taking its chance to clear its book and move forward together with it newly acquired north sabah in coming quarters.

haha, another guy that read half of the story.
Man, those who think that hibiscus making losses, please keep on selling.

By the way, for those who willing to go deeper, please go to 15.1 to read (iv) Investment holding and group activities.
There's a writen off on britannia rig of 6.4 mil and business development fees of 4.8mil.
So without all these, there's actually another 11 mil into the profit after tax.

So well, it might dips because the ignorance. Top up if possible if price drop because of public didnt understand hibiscus good enough

But i saw facebook post all didnt dig enough and assume hibiscus is making lost if without goodwill due to high admin fees

Yes, so by only considering admin fees but without considering goodwill then it is not fair

And if really wanna exclude the north sabah, then just focus into anasuria details. About same revenue last quaryertbut less operation expenses, apa kita mahu? Lol

Count in extra admin cost but exclude the negative goodwill, not fair at all

It is great to read financial report, but need to go in deeper why all the abnormal increase

Newbie8080, go and review the hibiscus presentatio. The high admin cost is because of the transition of sabah into hibisucs account book.

wah, alvin yoong changing opinion quite fast wo. Before that say hibiscus for sure good result now say very bad.
Airasia cant go up because concern on higher fuel price....higher fuel price because of higher crude oil price....who get benefited? hibiscus...

Extra opex is because of calculating part of the upcoming drilling costs into it and also some production maintenance cost. So it remain to be really lean for anasuria in general

Anasuria itself is performing marvelously. They able to recover from production disruption so fast and deliver the oil tanker offload in 90 working days is really a great performance that should get praised.

Gwansoo, what they going to realize it? U means north sabah?

Inventory built up is because what they produce more than the oil tanker can offload. Hence they will stock up on fpso

Anasuria just lined up as per plan. Only north sabah is the one that no one can predict.

82% uptime and selling oil at 65usd. Awesome on anasuria. And i dont know why people complain a so so result

Why let the short term price movement scares you.
in short term, market is a voting machine. In long term, market is a weighing machine.
If confident in hibiscus, then just keep holding.

To make profit, is buy in red and sell in green.
Not the other way round.

stockraider, dont see how we are much different from those rich director.
They see the potential in the company hence willing to put own money into it.
Same goes to us.

And they did have more insight into hibiscus than us, and thus when they bought means it is a type of good signs.
Especially she bought soon after the sabah deal closed.

director bought actually last month at higher price.

DATO' DR ZAHA RINA BINTI ZAHARI 17-Apr-2018 Acquired 365,000 0.920

Moneymore, i had go through the dnex annual report. Something i found out:

1. Ping petroleum is the only associates of DNEX , the others are all subsidiaries (where DNEX own more than 50%).
2. The contribution of energy segment's accosiates in prospects (ping petroleum) is actually accumulated quarters earnings.
3. Ping revenue is about the same as hibiscus revenue as both own 50% each on anasuria (Ping 270 mil and hibiscus 278 mil)
4. Ping been contributed around PAT 4.5million constantly except q4 2017 which almost double (9.2 million) without any reason why or how. (probably because ping dont need to bear the extra ops expenses for rectifying the production disruption in Q4?)
Good thing is Ping's contribution in recent quarter (6.05 million) is higher than Q1,Q2,Q3 but only lower than Q4. So we can expect anasuria PAT better tha Q3 2017? perhaps?

Thanks a lot, moneymore. Good info, and will look into dnex annual report more

Vespa, i do think dnex have more associates other than Ping alone.
Coz i try to go through the last 2 quarter of DNEX's contribution by associates in energy sector.

The income from it, is actually higher than what hibiscus earn in same quarter (which own 50% of anasuria and dnex only owns 15% of anasuria). So with just ping as associates, it wont fill the gap.

So this lead to my thinking of there's actually more associates other than ping. (thus they use plural, haha)

Some bright point will be:

1. Increase in brent price as what xiaoqing88 mentioned. (around 65usd perhaps? based on mid march brent price)
2. Lower operation expenses (if no more unplanned major operation hiccups)
3. Ops expenses lower as no more planned maintenance work as in Q3 & Q4 2017.

Ya, this quarter will be a bit kind of full with uncertainties. and with market sentiment now, stock with an unexpected quarters will get slammed straight to the ground.

Rama118, Yes, the deal closed on 31st March 2018, yet is it going to reflected into this coming QR? nobody can answer as there's no official announcement from hibiscus on this.

Just some hints from hibiscus' website Q&A as follow "The Group is currently assessing this, and will include the outcome of such assessment in the financial results for the financial quarter ended 31 March 2018".

By the way, north sabah is something extra / bonus and we dont know how it will performed till it appears in QR.

So i still trying to focus on anasuria's performance.
And to fill up the oil tanker, anasuria will need to produce around 3000bbl/day of crude (online production time >80%).
And if it miss that, then the sales volume will drop, which will eventually effect its revenue. (And unfortunately inventories is low to fill in the gap as it was used up on Q4 2017.

Some bright point will be:
1.

Opec would be pretty atupid if they really increase the producion back. Just a rumour already made a knee jerk on crude plunge, imagine they really increase the output and what will be the effects of aramco ipo

I am pretty confident with hibiscus on long term, but the coming quarter didnt give me a high confidence to be a great quarter if didnt count in north sabah. But well we will see how

Oozie, production back to expected value is actually a quite vast answer. And i mentioned earlier, its inventory actually dropped quite a lot as to fill the gap caused by the production disruption. So the production last quarter will have to be at quite a high level to fill the oil tanker without relying on inventory

But the maintenance spilt over actually didnt mentioned in dnex qr, so it is actually assumed by the analyst? And also the maintenance of anasuria have completed last quarter, what it had last qr is the production disruption.

Vespa, in dnex qr it mention 'The Group share in results
in an associate company is also improved in tandem with the improving crude oil price in current quarter' so from here seems pinv petroleum contrivute better than last quarter.

Oo, never mind, i already get it from google. Ya tge associateds drop 34% qoq, but i cant really search how many associates dnex actually own. So it is a bit in a haze now

Vespa, can u share the article of ta research on dnex? Would like to have a read on it

Nope, no qr report out. Just be patient, hibiscus actually announcee on 31st may on year 2016.

It is really worth for that guy to fork out RM 100 and spend his time to convert the warrant to 100 shares?

Man, really cannot understand what is that dude thinking

Ya, 100 shares. Even he get it for free, he also losing money by doing so as hibiscus still below rm 1 and also the transaction fees

Someone exercise the warrant?! Lol, how can he earn by doing so?

He keep on spreading fake news from time to time, u know what he wanna do la.

And it suddenly drop quite a lot in this quarter which make me concern on anasuria. Coz i do worry that anasuria production will not able to fill the oil tanker this quarter

Oozie, in page 11 there is 'share of results in associate net of tax' but i am not sure is it solely link to ping petroleum or there is more than that. I try to trace back few quarters, but it doea not tally with the 15% ownership sharing of anasuria profit