KUALA LUMPUR (Feb 27): Hibiscus Petroleum Bhd (KL:HIBISCS) reported on Friday a 15% decline in its latest quarter earnings as higher operating and administrative costs offset the small gain in sales volume amid softer realised oil and gas prices.

Net profit for the second quarter ended Dec 31, 2025 (2QFY2026) stood at RM70.35 million, down from RM83.26 million a year earlier, according to its filing with Bursa Malaysia. Revenue fell 16.6% to RM544.49 million from RM653.18 million previously, mainly due to lower average realised prices for oil, condensate and gas.

“We [still] remain on track to meet our FY2026 sales volume guidance of nine million barrels of oil equivalents (Mboe) to 9.4 million Mboe,” Hibiscus managing director Datuk Dr Kenneth Pereira said in a statement, adding that the group successfully completed the drilling phase of the Teal West Development in January 2026 and is targeting first oil in mid-2026.

The group managed to sell a total of 2.53 Mboe during the quarter. For the six months ended Dec 31, 2025, cumulative sales reached 4.4 Mboe.

Pereira said discussions with reputable investors to explore a potential long-term strategic investment are ongoing. 

“The entry of such investor(s) would provide a strong foundation for Hibiscus Petroleum to achieve its 2030 mission enabled through access to capital and/or assets. Pareto Securities has been appointed as our financial adviser to assist in the evaluation of proposals received,” he said.

The group declared a second interim single-tier dividend of two sen per ordinary share, payable on April 24, bringing total dividends declared to date for FY2026 to four sen per share.

It has set a minimum total dividend target of eight sen per share for FY2026 if average oil prices range between US$65 (RM252.91) and US$75 per barrel, and 10 sen per share if oil prices exceed US$75 per barrel.

For the first half of FY2026, net profit declined 43% to RM90.45 million from RM158.86 million in the same period last year, while revenue fell nearly 14% to RM977.55 million from RM1.13 billion. 

The weaker performance was largely attributed to lower realised prices and reduced revenue contribution from certain operating assets, including its Brunei operations, alongside higher cost components during the period.

Hibiscus shares closed two sen higher at RM1.60, giving the group a market capitalisation of RM1.18 billion. The stock has gained more than 5% year to date.