PETALING JAYA: Hibiscus Petroleum Bhd is seen as one of the clearest domestic proxies to rising crude prices, with analysts expecting the upstream producer to benefit from sustained geopolitical risk in the oil market, firmer realised prices and stronger second-half (2H26) sales. According to the report, normal crude flow through Hormuz is around 20 million barrels per day, but effective supply reaching the market has fallen sharply to about 7.6 million barrels per day. This leaves a gross shortfall of 12.4 million barrels per day. Average operating expenditure is estimated at US$21 to US$23 per boe, allowing Hibiscus to remain profitable even under weaker oil scenarios. The research house said management has guided for a 10 sen dividend if average realised oil prices exceed US$75 per barrel in FY26.

Source: The Star March 23, 2026 00:35 UTC