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Research by PIB
Outperform – TP of MYR 3.20

“Gassing Up In Brunei” 

Hibiscus Petroleum (Hibiscus) announced that it has entered into a conditional sale and purchase agreement with TotalEnergies Holdings for the acquisition of the entire equity interest in TotalEnergies EP (Brunei) B.V for a cash purchase consideration of USD259.4m (~RM1.22bn). We view this development positively as it will boost Hibiscus’ gas reserve by more than double, increase overall production by 37% and lift its earnings its by 12% to 16% on average. We deem the price tag as fair given the current Brent oil prices market dynamics trading in the range of USD75-95/bbl throughout the remaining concession until 2039. We maintain our Outperform call with an unchanged target price of RM3.20 for now, though our DCF valuation could see an additional 12sen or 3.8% potential upside from this acquisition.

Analyst(s):
Khairul Fahmi, CFA
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$KLSE-HIBISCS 
Research by PIB
Outperform – TP of MYR 3.20

“Gassing Up In Brunei” 

Hibiscus Petroleum (Hibiscus) announced that it has entered into a conditional sale and purchase agreement with TotalEnergies Holdings for the acquisition of the entire equity interest in TotalEnergies EP (Brunei) B.V for a cash purchase consideration of USD259.4m (~RM1.22bn). We view this development positively as it will boost Hibiscus’ gas reserve by more than double, increase overall production by 37% and lift its earnings its by 12% to 16% on average. We deem the price tag as fair given the current Brent oil prices market dynamics trading in the range of USD75-95/bbl throughout the remaining concession until 2039. We maintain our Outperform call with an unchanged target price of RM3.20 for now, though our DCF valuation could see an additional 12sen or 3.8% potential upside from this acquisition.

Analyst(s):
Khairul Fahmi, CFA
khairul.fahmi@publicinvestbank.com.my

$HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD)