Even though the stock is being unrelentingly shorted Hibiscus is still a exceptionally well run business with great free cashflow, great assets and a significant future ahead. Eventually this will shine through and sense will prevail. With the market cap now at 1.8 billion and annual revenues projected to match this with very healthy profit margins and cash flow, no debt, strategic assets and reserves in Asia the North Sea (where energy security will be an ongoing major issue) and assets which far outvalue it's share price. It's a bargain, a diamond in the rubble. Even though in now in the red I'm holding and will accumulate more becuase I beleive in the long term fundamentals of the business. I'm sure if Malaysia doesn't appreciate Hibiscus that can always delist and move somewhere like Singapore which, I'm sure, would. Time will tell.

Disappointing thing for me as a long term value investor is that hibiscus management have remained largely silent while RM1.2 Billion has been wiped of shareholder value over the last month. If you want to change the sentiment you need to managed the PR and positive news.. Still haven't seen their June investor presentation. They could have released that together with confirming their May offtake figures.. But instead we are left to ponder and wear the downside.. Disappointing to see.

Yes feels awfully like this stock is being manipulated with shorting which doesn't at all match business fundamentals.

Loading up more.. Oil drops $2 and hibiscus drops 8%.. Fundamentals still extremely sound and stock is cheap. Holding and waiting for correction (just wait for end August).

Malaysian Tapis Crude was at $132.38 yesterday.. Not quoted today but probably up to $135.. Hibiscus has around 300k of oil to offtake this month in Sabah. Happy days ;)

The interesting thing about that statement is that they confirmed that they did offtake 350,326 barrels on 24th May from Kinabalu.. Which reinforces the numbers they presented in their Q3 offtake schedule which to me confirms that production is going to plan and Q4 figures will be exceptional.

Seems like someone's trying to manipulate the price appreciating with roadblock offloading alot at 1.31.. nazrzach..need to include gas (is 30% BOE of their total offtake). Also no windfall tax for Malaysia..they already pay 38%..

What's even more interesting is that Malaysian Tapis Crude is over US$132!

Apple168.. Sorry u are really full of it. Hibiscus has a very small set up in the UK.. It will also benefit from the UKs drive for energy self sufficiency which will help them unlock marigolds assest. Would be great if you actually bought something to the table which was positive.. From what I can see Hibiscus is going to have a HUGE quarter and the only direction their share price is going is up!

Agreed

What a load of rubbish..when are you guys gonna grow up and stop discounting against enterprise value..you think hibiscus in its right mind would value it's reserves at half of any competitor and 66% of industry..mad! FOS I say

So someone now has a acquired a not insignificant position of 2% of hibicus at 1.40.. Will be an interesting few days ahead.. Are they shorting or accumulating..anyway of know who it was?

Perhaps it came out of the blue becuase hibiscus is way too cheap.. If they handed screwed up there off take timing for Q3 the shareprice would be at 1.60+ by now.. So 1.40 looks like a bargain.. And with oil at 120 (130 for hibiscus) it's not going down tomorrow..

Who was mopping up at 1.40... Not rr88 I guess

Just be a bit patient. Q1 22 results will be very good, but Q2 22 results will be marvelous.. I reckon RM150mill and almost RM400 mill respectfully.. I believe they are pumping more than they indicated..Close to 30000 barrels a day.. Oil price for Q2 for them will average over US$115 a barrel and USD also now 4.4.. Profit margins also increase as oil goes up, for every dollar of profit above operation break even around 40% is tax bit the rest is pure profit. If you do the math for Q2 you might surprise yourself

Boris Johnson has also gone home from Saudi with his tail between his legs.. Which also means UK will now fastrack ramping oil production in the north Sea.. And hibiscus just happens to have 43 million barrels with Marigold.. Which is now worth a huge amount more.. I also think they'll be another supply crunch. Buffet doesn't by Oil unless he knows what's coming ;)

Interesting that oil prices are heading back up. And it looks like will average we'll over US$100 for March. Will be interesting to see when hibiscus transact in March.. For Sabah fields they have an uplfut every 3 weeks or so at 300000 barrels a time.. So if they did uplift around March 10 that could have been at US$130+ a barrel.. They also command a US$5 premium in price over market because of the quality of Malaysian Crude.. Something also to be aware of. Looking at Q1 looks like they may average out at around $95 to $100 a barrel as production increased 3 fold with repsol kicking in 24 Jan when Brent was already knocking on $90 a barrel.

Oils on its way back up.. Approaching US$115..irrespective if Hibiscus is transacting oil around this price this month they will have a fantastic quarter. Gas has gone up even more and 30% of hibiscus output is now gas. Even for March if we look at their quoted production of 23k barrels oil equivalent (which I think this them being conservative) @ US$110 a barrel average for march take off that's 23*110*31*4.18= RM327 million.. When oil is relatively high (like back in 2018/19) there nett profit is around 25%.. So they make RM81 million in 1 month.. That's more than the entire Q2 profit.. In one month. But I'm also sure that they will be looking to increase production (originally when they bought repsol they siad an extra 18k barrels per day.. so maybe they are also being conservative at a total of 23k per day and not 27k)..so maybe we'll be surprised.. So what happens if you have cash reserves of RM550 Mil at Dec 21, make 200mill for Q1 2022, and make even more for Q2 2022.. If you have a billion ringitt in cash you think Dr Ken and Datuk Michael won't want some of it? Haven't seen any of them selling... I wonder why..

Great opportunity to buy more.. Which is what I'm doing.. Then watch it go back up

Cheapest, most undervalued, oil producer stock in the world at present.. cant wait for Q1 results, massive profits coming

Yes - the current NAV is based on life before Repsol and before the recent increases in oil price. with next quarters results I expect this to be recalculated and even if you were very conservative it would double. The 70 Million for Trafigura does seem very high. The financing costs for the credit line are low - around 6% PA I believe. So perhaps you might want to consider the interest costs on the credit line only (which may be around RM5 Million). They also have additional cash reserves of RM550 million at Dec 2021 so the credit line is more than covered and I imagine would be a long term liability in their balance sheet.

Maybanks TP assessment.. I meant

Very interesting observations.. If lower production of 15% is coupled with higher oil prices of 17% the the nett affect would be canceled and the eps should be similar to your previous estimate I beleive. So a 29% drop doesn't seem to make sense there.. Repsol was also funded from the crps allocation (around RM197 million).. I would have expected, with retained earnings and Q1 and Q2 2022 profits would more than cover the trafigura credit line.. Perhaps you can check the workings as it doesn't quite make sense.. Would love to know the upside if oil remains at 100 for the rest of the year.. It was interesting in May as TP assessment that from every dollar increase (above break even I assume) hibiscus profit ranges from 36 to 54 % (after tax).. So a prolonged hike in oil prices will have a significant impact/upside to their Profitability..

Or not sell and be patient

Oil now 99+.. Time to load up and be patient

Great to see the price down today.. I bought more.. Won't be selling in a hurry

So oil is now hovering around 93..so what.. Hibiscus is still creaming it. Everyday RM10 million plus revenue at 27,000 barrles of oil equivalent.. They will make more this quarter than they did the whole of last year.. And even if oil went down to 80..they will still be immensely profitable. So if hibiscus turns over RM3 Billion plus this calender year and they make 700 million plus.. You think their share price will still be at 1.14??

https://www.thevibes.com/articles/business/53993/hibiscus-petroleums-uk-project-gets-rishi-sunak-backing

More good news

More positive news..

https://www.thevibes.com/articles/business/53993/hibiscus-petroleums-uk-project-gets-rishi-sunak-backing

I did take a look at Pantech and I think your reasoning behind investing it it is sound with rebounding and ongoing investment in O&G maintenance and infrastructure increasing.. Especially if you got in cheap. They look to have a solid P&L and are paying regular dividends and I think it will continue for the next few years at least. I do think that their upside though appears limited by what they can sell which seems to always produce a profit of 10% and the trading volume is a bit low but that said looks like they'll be pretty solid over the next few years and, providing they don't get disrupted by other supliers, look pretty good as a dividend stock with some price upside. I like hibiscus more though because of the repsol acquisition which was very smart (priced when oil was at $50) and will have a massive impact on their valuation in the near term. Their strategic plan they have with progressively shifting their assets base to gas, their very competitive and low extraction costs at around US$20 a barrel equivalent and assets like Marigold which secure their future makes their ongoing profitably very sustainable even if oil does drop back to 50..but I don't see that happening over the next few years and I think they'll be extremely profitable.. So I have a lot in with them as a medium term play and I'll just wait patiently for the action to start.. Would live to know with recent high volumes if the big investment funds / sovereign funds are now positioning themselves for the same..

Interesting there's so many naysayers out there.. Wonder if they'll go sell there X70 tomorrow for an electric equivalent.. Oops there is none! Unlees you have over 250k! Guess that won't happen tomorrow, or next year, or even 3 years from now.. I think we all recognise that over along period oil demand may drop.. But not in the next 5 years or so.. And given that everyone says its a sunset industry do you think investors will pump money into upping the spend on maintaining and developing assets..maybe but my bet is not so much and oil will remain high for sometime.. I do love the hibiscus scent wafting over me as it grows higher

Their Q2 results should be out later this week. Reposol had made US78.5 million to the date they settled so over RM300+ million annually on lower oil prices. This quarter will be huge for them although probably won't see it till their Q3 results in May.. Interested to hear what they have to say - you couldn't ask for a better start to the year..

But my hearing aid is off.. I think malfunctioning.. apple brand ;)

Lol.. I guess, based on advice, we should all sell lol
..

Even better.. 62% of the gain is profit.. Ker ching!

Repsol is free.. All paid. Everything now hits the bottom line and at 91usd a barrel I'd bet is RM2.5 million profit a day at present

https://themalaysianreserve.com/2022/02/04/hibiscus-rises-to-year-high/

I think the fundamentals will start to do the talking.. Oil is not going anywhere anytime soon.. We aren't all going out tomorrow to sell our cars and, as flights and freight continue to pick up, oil will remain in demand even with increased production. Hibiscus is a very well run business, management is world class with extensive experience. They hold no debt and I doubt they will even have to use their credit facilities to help with the reposol acquisition. The crps, operational profit from reposol to date and cash in hand is more than enough to cover it. A brilliant move I'd say. And I'm sure as we start to learn more with their Q2 reporting and guidance on repsols impact coming next week its only going to be very positive to their share price.. Still significantly undervalued I'd say and I'm going back in for more..

Watch it take off.. Selling way too soon

That's looking at which of two options is more feasible for extraction.. I think that's definately going ahead.. Especially with uncertainty around energy supplies in Europe.. Marigold won't come online until end 23 at the earliest so no material effect to the business this year or next

Now it's finally waking up.. Like a giant out of its slumber.. Fee fi fo fum

Also read that OPEC+ is falling short on supply.. It can't ramp up to meet demand, especially Africa, as they've not maintained infrastructure investments (but I'd also guess neither does opec really want to ramp up..).. Oil at 100 anyone? All plays into Hibiscus's hands.. Waiting to harvest

Yes, it is.. But I think as they pile on the value and we see their next quarter results and consolidation of reposol it will make impressive reading.. and spark more interest.. Don't mind living with 25% pa dividends either lol

bought more also - with the earlier crps the acquisition is almost fully funded with no credit lines required so should be now hitting their bottom line.. at US$80+ a barrel with growing demand I'd wager they make RM500 million+ this year.. if not more.. so at 84c with market cap at 1.6 billion its a bargin.. if you aren't carrying any debt, have RM750 million in cash and receivables already, with more piling up every day what will you do with it all... whats more the repsol asset was an absolute bargin and just added RM1billion+ to their asset base...