Hibiscus Petroleum Profit Soars on Higher Production Volumes

Hibiscus Petroleum Bhd is among companies benefiting from higher crude oil prices. BIMB Research has raised the company's financial year ending June 30, 2027 (FY27) earnings by 60% year-on-year to RM468mil on higher production volumes.

The earnings growth is primarily driven by higher production and sales volumes rather than a materially higher oil price assumption. The research house has maintained its 'buy' recommendation on the stock, with a target price of RM2.90 from RM2.80.

The company's direct exposure to upstream production makes it one of the clearest beneficiaries of the stronger crude oil price environment. BIMB Research estimates that every US$5 a barrel change in the oil price assumption results in approximately RM52mil change in FY27 earnings.