KUALA LUMPUR, June 8 ― Hibiscus Petroleum Bhd was one of the top active counters, bagging 5.5 sen to 71 sen, with 108.82 million shares changing hands at 9.55am, following the details provided by the company on its recent acquisition of Repsol Exploración, SA (Repsol) assets to boost earnings.
In a note today, PublicInvest Research said the details entailed information about the assets, sources of funding, and other salient terms such as pricing, capital expenditure, operating expenses, and 2C reserves.
"Overall, we view this development as timely in light of the favourable oil price environment, with a significant impact to the group’s production and earnings immediately upon completion.
"These assets are expected to increase the group’s production rate, including gas, to 26,800 barrels of oil equivalent (boe)/day with oil production rate to increase from 9,000 bbls/day to 18,500 bbls/day," it said.
Hence, the research firm maintained an 'outperform' call on Hibiscus with a revised DCF based target price to RM1.05 (from 76 sen previously) on fully diluted basis. ― Bernama
