HIBISCUS PETROLEUM BHD (HIBISCS)

Hibiscus Petroleum: From Small E&P to Multi-Asset Regional Platform

Hibiscus Petroleum Berhad (Bursa: 5199 | HIBISCS) is not the small exploration company many investors remember. Over the past 24 months, this company has undergone the most significant transformation in its history — evolving from a single-jurisdiction upstream oil producer into a diversified multi-asset E&P platform operating across three countries: Malaysia, Brunei, and the United Kingdom.

Founded in 2011 by Dato' Dr Kenneth Gerard Pereira and listed on Bursa Malaysia in the same year, Hibiscus now operates a far more robust and geographically diversified portfolio than at any point in its history.

Current Asset Portfolio (April 2026)

Three Defining Transformation Events

1. Brunei Acquisition (October 2024) -- Hibiscus completed the acquisition of TotalEnergies EP (Brunei) B.V. in October 2024, securing a 37.5% interest in Block B Maharajalela-Jamalulalam (MLJ), a gas-producing field in Brunei. The US$259 million transaction added ~9,000 boe/d to group output (+34%) and provided Hibiscus with its first meaningful exposure to natural gas.

2. PM3 CAA PSC 20-Year Extension (April 2025) -- Hibiscus's largest producing asset, PM3 CAA (contributing ~42% of group output), received a PSC extension from December 2027 to December 2047 -- at zero consideration. This unlocks 26 MMboe in 2P reserves and 2C resources, and enables new well drilling programs over the coming decade.

3. Teal West UK North Sea Development -- The drilling phase was completed in January 2026. First oil is expected in mid-2026, with an initial estimate of 3.4 MMboe -- and subsurface data suggests reserves may exceed the initial estimate.

Shariah Status

Hibiscus Petroleum is a SHARIAH-COMPLIANT stock on Bursa Malaysia. The stock is suitable for investors who prioritize Shariah-compliant investment mandates.

With group production now exceeding 26,000 boe/d (Q2 FY2026), Hibiscus is progressing toward its 35,000-50,000 boe/d ambition -- making it the only large-scale pure-play upstream E&P company listed on Bursa Malaysia.

The Q4 FY2026 results (quarter ended 30 June 2026) confirm the strong momentum that had been building since Q2. Here is the revenue and profit trend across the latest eight quarters.

*Q4 FY2026 revenue and EPS are implied estimates (full-year revenue exceeding RM2.0 billion less the RM1.495 billion already booked over 9M FY2026; EPS estimated from RM191 million PAT divided by roughly 738 million shares outstanding), as the official quarterly line item has not yet been loaded into the database.

For FY2026 as a whole, revenue topped RM2.0 billion for the fourth consecutive year, and EBITDA exceeded RM1.0 billion for the fifth consecutive year. Full-year PAT nearly tripled versus FY2025.

Hibiscus declared its fourth and final dividend for FY2026, bringing the full-year total to 10.0 sen per share, the highest annual dividend in the company's history. At the RM2.05 closing price, this equates to a dividend yield of roughly 4.9%.

*Q4 DPS is an implied figure (10.0 sen full-year total less 7.0 sen already declared for 9M FY2026).

The company has maintained or raised its dividend in absolute sen terms for six consecutive years, with no cuts, even though the payout ratio has fluctuated year to year alongside profits.