Latest news with #HibiscusPetroleumBhd
New Straits Times
24-06-2025
- Business
- New Straits Times
Reservoir Link tumbles 26pct as oil rally fizzles on ceasefire news
KUALA LUMPUR: Reservoir Link Energy Bhd plunged nearly 26 per cent in early trade, wiping out all of yesterday's sharp gains, as oil prices retreated following news of a ceasefire between Israel and Iran. The stock opened flat at 43 sen before tumbling to as low as 32 sen, down 25.58 per cent or 11 sen, slipping below its start-of-year price of 33.5 sen. By 11.05am, it pared some losses to trade at 34.5 sen, still down 19.77 per cent, with 24.43 million shares changing hands. It was the second most actively traded stock. Yesterday, Reservoir Link surged 16.2 per cent, or six sen, to close at 43 sen, riding on a rally in global oil prices that pushed crude to its highest levels in more than a month. It was the company's busiest trading day since Dec 4, 2024, with volume soaring to 57.81 million shares. However, sentiment shifted overnight after United States President Donald Trump announced a "complete and total" ceasefire between Israel and Iran, easing fears of regional supply disruptions. Brent crude dropped 3.8 per cent to US$68.79 per barrel, while West Texas Intermediate slid 3.9 per cent to US$65.46, both hitting their lowest levels in more than a week. Other oil and gas counters also retreated. Hibiscus Petroleum Bhd, the biggest beneficiary of Monday's rally, fell 8.74 per cent or 16 sen to RM1.67. Bumi Armada Bhd slipped 4.17 per cent to 46 sen, while Velesto Energy Bhd was unchanged at 18.5 sen after an earlier dip of 5.41 per cent. All four counters dominated the exchange's most active list. The sell-off dragged the Bursa Malaysia Energy Index down 2.28 per cent, or nearly 17 points, to 728.96, the steepest decline among all sectoral indices. Across the broader market, the benchmark FTSE Bursa Malaysia KLCI edged down 0.09 per cent, or 1.30 points, to 1,515.31 by mid-morning.
New Straits Times
24-06-2025
- Business
- New Straits Times
Hibiscus, Dialog to benefit from oil price spike, but gains may not last
KUALA LUMPUR: Hibiscus Petroleum Bhd could see its profit after tax and minority interest (Patami) rise by 20 per cent for every US$5 per barrel increase in Brent crude, according to CGS International. In a sector research note, the firm identified Hibiscus as the most sensitive to oil price movements among the companies under its coverage. "Hibiscus has the highest earnings sensitivity to crude oil price changes in our coverage universe and also one of the highest share price correlations to Brent," it said. The firm said upstream players such as Hibiscus and Dialog Group Bhd stand to benefit from the recent surge in oil prices but cautioned that the rally may reverse if tensions ease and fundamentals take hold. In contrast to Hibiscus, Dialog is expected to benefit more modestly due to its diversified earnings base. "About 35 per cent of Dialog's Patami is linked to its upstream operations, while its tank terminal segment provides earnings stability," the firm said. "Dialog's share price has historically been negatively correlated with Brent, as higher oil prices typically signal supply shortages that reduce tank utilisation. "However, in the past week, the correlation has been positive due to strong utilisation from OPEC+ overproduction. The recent increase in oil prices is icing on the cake," it added. CGS maintains Dialog as its top sector pick, citing its lower risk profile and long-term growth from expanding its tank terminal portfolio, particularly with two contracts in progress at Pengerang. The firm reiterated its "overweight" rating on the energy sector, driven by strong fundamentals and attractive valuations of individual stocks. A key rerating catalyst would be Iranian retaliation that disrupts regional oil production or closes the Strait of Hormuz, a vital route for global energy shipments. "A de-escalation in tensions, combined with rising supply and weaker demand, could trigger a pullback in oil prices and sector earnings," it said.
The Star
19-06-2025
- Business
- The Star
Forest research institute upgrade to boost ecotourism appeal
(From right) Ismail with Joyce and other guests at the suspension bridge in FRIM that has been reconstructed with additional safety features and durable hardwood. THE infrastructure upgrade at the Forest Research Institute Malaysia (FRIM) in Kepong, Selangor, is expected to enhance its ecotourism appeal ahead of Visit Malaysia 2026 (VM2026). FRIM director-general Datuk Dr Ismail Parlan said the project included reconstructing a 12m suspension bridge using durable hardwood and support cables with safety 'u-clip' netting, as well as installing an informational map panel in the Borneo Plot near the Sungai Kroh picnic area. He said the initiative was carried out in collaboration with the government and corporate partners, including Hibiscus Petroleum Bhd which contributed RM96,000 through its corporate social responsibility programme to enhance FRIM's ecotourism facilities. 'This effort extends beyond just infrastructure enhancement. 'It demonstrates a strong corporate commitment to long-term environmental and biodiversity conservation,' he told reporters after visiting the site, according to Bernama. Present were Hibiscus Petroleum Bhd corporate finance head Joyce Vasudevan and corporate development vice-president Lily Ling. Ismail said the Borneo Plot was one of FRIM's unique attractions, which featured forest species native to Borneo and renowned for its tropical biodiversity, including kapur baji (Dryobalanops lanceolata) and engkabang (Rubroshorea macrophylla). Ismail (right) briefing Ling (left) on the tree species at the Borneo Plot. Established as a research site, the Borneo Plot also serves as an outdoor learning space for students and visitors, as well as a conservation area for endangered species. He said FRIM has evolved from being a research and innovation centre into a hub for nature-based tourism and environmental education, drawing both local and international visitors. As such, he said FRIM would work closely with Tourism, Arts and Culture Ministry to make early preparations for VM2026. 'Last year, we recorded 157,699 visitors. 'This year, we are targeting 200,000 – not only to enjoy the natural surroundings but also to raise public awareness about the importance of forests and biodiversity,' said Ismail. FRIM, declared a National Heritage site in 2015, is currently in the final stage of nomination as a Unesco World Heritage Site.
New Straits Times
16-06-2025
- Business
- New Straits Times
Oil prices to rise amid escalating Middle East tensions
KUALA LUMPUR: Oil prices are expected to trend higher in the near term amid growing geopolitical risks, particularly fears of escalating attacks on Iran's oil fields and refinery infrastructure. Hong Leong Investment Bank Bhd (HLIB) said the extent of Iran's crude oil supply disruption is still not yet ascertained, as the firm understood that the facilities under attack were mainly downstream refineries and gas-related facilities. Although Iran's crude supply should remain intact for now, HLIB believes oil prices are skewed to the upside in the near term, given rising fear of more widespread attacks on Iran's oil fields and refinery facilities. "This could portend a higher geopolitical premium on crude oil," it said in a note. The Middle East geopolitical unrest caused Brent oil prices to surge seven per cent, settling at US$74 per barrel last Friday. Over the weekend, tensions intensified as Israel expanded its strikes to Iran's critical oil and gas infrastructure. Although the oil price recovery may not be sustainable, HLIB said it could offer some respite to upstream producers such as Hibiscus Petroleum Bhd, given that it has been suffering from depressed realised oil prices since the US Liberation Day announcement in early April. Should oil prices prove able to sustain above US$70 per barrel in the medium term, the firm believes Velesto Energy Bhd could benefit from better drilling activity as higher oil prices encourage exploration and production works. "We slightly increase our average Brent oil price forecasts for 2025 to US$67 per barrel, but retain our 2026 assumption at US$70 per barrel to reflect a higher geopolitical risk premium in the near term," it said. Overall, HLIB has upgraded the oil and gas (O&G) sector to tactical 'Overweight' from 'Neutral' in light of the sharp rebound in oil prices, driven by heightened geopolitical risk. In its view, the firm said sustained Brent prices above US$70 per barrel could catalyse a short-term re-rating across the O&G space, particularly for upstream and service-related names. "We see compelling risk-reward in select counters trading at undemanding valuations and offering attractive dividend yields of more than five per cent, such as Dayang Enterprise Holdings Bhd, Velesto Energy and Deleum Bhd," it added.
New Straits Times
15-06-2025
- Business
- New Straits Times
Global oil price surge to have dual impact on Malaysia
KUALA LUMPUR: The surge in global oil prices poses a mixed effect on Malaysia's economy, with the local energy-related stocks seeing immediate gains. The likes of Velesto Energy Bhd, Bumi Armada Bhd, Hibiscus Petroleum Bhd and Dialog Group Bhd saw their shares rising on Friday as oil prices jumped following rising geopolitical tensions in the Middle East. Industry observers, however, said stronger oil prices may drive up fuel and transportation costs, leading to broader inflationary pressures. Oil prices surged more than nine per cent on Friday to around US$75, their highest in almost five months, after Israel struck Iran. Brent crude futures jumped US$6.29, or 9.07 per cent, to US$75.65 a barrel by 0315 GMT after hitting an intraday high of US$78.50, the highest since Jan 27. US West Texas Intermediate crude was up US$6.43, or 9.45 per cent, at US$74.47 a barrel after hitting a high of US$77.62, the loftiest since Jan 21. Reuters reported that Friday's gains were the largest intraday moves for both contracts since 2022 after Russia invaded Ukraine, causing energy prices to spike. Pressure on inflation Economist Samirul Ariff Othman told Business Times that rising oil prices may drive up fuel and transportation costs. This will lead to broader inflationary pressures across consumer goods and business operations, particularly in sectors such as manufacturing and palm oil. At the same time, he said trade and logistics may come under strain due to potential shipping reroutes and rising freight charges. "Regional equities and currencies often react negatively to spikes. Asia saw stock drops immediately after today's strike. "However, Malaysia is also an oil and gas (O&G) exporter, so government revenue and energy sector profits will benefit, partially offsetting broader inflation pressures," he said. Samirul said if the conflict remains contained and no critical energy facilities are targeted, prices may retreat to US$70-US$75 per barrel, maintaining elevated risk premiums but not exceeding historical averages. However, if tensions escalate or the conflict persists, the situation could trigger a more sustained increase in prices. "Supply-chain barriers, through both oil and shipping lane disruptions, could keep prices elevated for months, potentially into the US$90 to US$120 range," he added. Samirul said the intraday surge in oil prices is deeply significant, as it constitutes one of the largest one-day moves in recent years. "Historically, such spikes have occurred only during major shocks, like the 2022 Ukraine war or 1970s oil-crisis era," he said. Worst case scenario Samirul also noted that global analysts at JP Morgan have warned that current oil prices already factor in a seven per cent probability of a worst-case supply disruption scenario, where prices could hit US$120 per barrel. "Yet if Iran retaliates, striking energy infrastructure or disrupting the Strait of Hormuz, the spike could accelerate and deepen. "If they don't, prices may ease back toward the low-US$70s, although elevated risk premiums could maintain somewhat higher levels than pre‑shock," he added. The economist explained that an escalation would likely affect global supply through two primary channels. The first is actual disruption, where Iran might launch direct attacks on oil tankers or production facilities in the region, with worst-case scenarios putting up to 20 million barrels per day (bpd) at risk. The second is a precautionary risk premium, where even in the absence of physical damage, heightened fears could lead to the closure of key shipping routes such as the Strait of Hormuz. "The World Bank models a 500,000 to two million bpd loss as 'small disruption' and six-eight million bpd in 'large disruption' scenarios. "That could drive prices sharply higher up by 20 to 75 per cent and force global supply chains to reroute, adding cost and time," he explained. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the sharp increase in Brent crude prices was mainly driven by Israel's strike on Iran, noting that geopolitical factors typically cause short-term shocks to oil prices. "After a while it would fade and it will go back to the fundamental aspect of the industries where the demand for oil is expected to trend lower as global growth momentum is expected to moderate based on the recent downward revision by the International Monetary Fund and World Bank," he said. Afzanizam noted that members of the Organisation of the Petroleum Exporting Countries and its allies (Opec+) had agreed to increase oil supply during their meeting in May this year, pointing to stable global growth and solid market fundamentals as the basis for the decision. "On that note, there are no issues on supply of oil and therefore, the sharp spike in crude oil prices are likely to be unsustainable," he said. He added that the price surge is temporary and primarily driven by geopolitical tensions. "Fundamentally speaking, the global oil supplies are sufficient and the expected moderation in global growth would demand for oil would remain fairly stable. The price spike looks like a temporary knee-jerk reaction," Afzanizam said. Hot stocks On Friday, Bursa Malaysia's Energy Index, which boasts 31 stocks, opened at 735.96 and climbed 2.01 per cent, gaining 14.63 points to end the day at 740.76. Meanwhile, the benchmark FTSE Bursa Malaysia KLCI fell by 0.56 per cent, shedding 8.51 points to close at 1,518.11. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said markets were in the process of repricing geopolitical risk, with Brent crude potentially surging past US$80 per barrel. "In the short term, this presents a tactical opportunity for oil and gas sector trades. "Unlike the relatively short-lived two-week spike observed during the early phase of the Russia-Ukraine war, the duration of the current oil price shock could prove to be longer-lasting," he said. Sedek added that stocks worth trading on short-term oil price momentum are the stocks that have upstream exposure or increasing mix of upstream concessions vs performing O&G services. Among the most actively traded stocks, Velesto climbed 2.78 per cent to finish at 18.5 sen, while Bumi Armada edged up 2.08 per cent to 49 sen. Dialog Group advanced 3.97 per cent to RM1.57, and Perdana Petroleum rose 5.56 per cent to 19 sen. On the top gainers list, Petron Malaysia Refining & Marketing Bhd increased 3.74 per cent to close at RM3.88, while Hibiscus Petroleum surged 7.10 per cent, closing at RM1.66. Meanwhile, Deleum Bhd gained 6.21 per cent to RM1.54, Yinson Holdings added 1.29 per cent to RM2.36, and Wasco Bhd was up 4.35 per cent to close at 96 sen.
