KUALA LUMPUR: Hibiscus Petroleum Bhd, which expects an “encouraging” year ahead, will not be paying out dividends in the short-term.
Speaking at a press conference after the group’s AGM today, managing director Dr. Kenneth Gerard Pereira said Hibiscus Petroleum has been profitable in the past seven quarters when oil prices ranged between US$45 and US$51 per barrel.
He said the group, which saw its net profit plunge 86.57% in the first quarter ended Sept 30, 2017, could see an encouraging year ahead if it is able to manage its cost price and keep production at reasonable levels.
Meanwhile, on dividend payouts to shareholders, Hibiscus Petroleum’s non-independent and non-executive chairman Zainul Rahim Mohd Zain said the group will not be considering a payout in the near-term.
“To be very honest we are not looking to pay out dividend in the short term because whatever profit we make we will have to re-invest into the business to grow the business. It is a very capital intensive business,” Zainul said.
“We would love to pay dividends only when we can afford it,” he added.
For the time being, Hibiscus Petroleum will be focusing on the Anasuria Cluster and the North Sabah Enhanced Oil Recovery production sharing contract (PSC).
The group recorded a net profit of RM10.78 million in Q1 2018 from RM80.28 million a year ago. Revenue for the period grew 38% to RM58.24 million from RM54.75 million a year ago.
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