Overview Report on Hibiscus Petroleum Bhd. (Malaysia)

Hibiscus Petroleum Bhd. is an investment holding company, which engages in the businesses of exploration and development of oil and gas. It operates through the following segments: Investment Holding and Group Activities, Lime, 3D Oil, VIC/L31, VIC/P57, and HIREX.

The Group has acquired 50% of the shares of Anasuria Hibiscus, which has helped them to increase the intangible assets to RM 997 Million. Which also include rights and concession of producing field licenses in Anasuria Cluster and capitalized acquisition and related transaction costs of VIC/P57 and VIC/L31.
The revenue boost up to RM81 million in year 2016. Because the most of revenue contribution was by the subsidiaries of Anasuria Cluster i.e. VIC/L31 and VIC/P57.

Therefore, the net profit boost up can be considered as one-off gain (cannot keep earn the profit in the long-term).

Risk:
• The revenue of the group might be suddenly decrease when the license at the expiry date.
• The net profit boost up due to the one-off gain. (Exp: negative goodwill from business combinations, reversal of deferred tax liabilities and others). The net profit increased isn`t healthy and cannot sustain in the long-term.
• The oil production rate of exploration wells has been reduced, the wells might be cannot produce oil as much as.
Benefit:
• Oil price keep increasing in the coming years.
• If the license has been renewed and extend period of time the revenue will keep increasing.