Hibiscus Petroleum Berhad (HIBISCS) Earnings Call Transcript & Summary

I'm Lily Ling, VP of Corporate Development. Joining me today are Dr. Kenneth Pereira, our Managing Director; Chee Yip, Chief Financial Officer; Joyce Vasudevan, our SVP of Corporate Finance; Deepak Thakur, our SVP, Economics and Business Planning; and from my team, Andrew, [ Jeehan ] and Adam. Earlier today, we released our results with the corporate business update, press release and a dividend declaration. All the announcements are available on our website and these chat. It's been a solid quarter for the group [Technical Difficulty] as we head into the second half of the financial year. With that, over to Deepak to take us through the presentation.

Thank you, Lily, and many thanks to all of you for attending this session on Friday. In the next three slides, we are going to talk about the key developments that are building momentum heading into second half 2026 and beyond. Let's start with the first point, which is about the project execution. Teal West, we made a significant progress. We drilled oil producer well. It's Drilling is completed with subsea installation expected to commence in April 2026 and to connect the newly drilled oil well FPSO. And we expect the first oil from Teal West in mid-calendar year 2026. So we are on track. Point number two is on our energy transition initiatives. So we started with a small solar PV farm in Brunei. The construction has started -- construction commenced in February 2026. We expect to execute all of the work in calendar year 2026 to start generating electricity from the solar farm in January 2027. This electricity would be used -- would be supplied to -- supplied for our low-pressure compressor project. Point number three, update on our corporate exercise. So discussion with the reputable independent strategic investors are ongoing with Pareto Securities appointed as a financial adviser to assist and to evaluate all proposals. Point number 4 is on the dividend. So we declared second interim dividend of $0.02 per share. That makes the total dividend up to second half or first half of FY 2026 to $0.04 per share. So we are on track, and we are maintaining our dividend guidance of $0.08 per share and with upside to $0.10 per share in the event oil price is more than $75 a barrel. Okay. Let's go to the next slide, a bit more detail on Teal West. As you know, this is a very important project for us, which delivers significant incremental production for us, which will also help us to meet our 2026 production target of 35,000 barrels of oil equivalent per day. So drilling is completed, first oil expected in mid-2026. And in terms of tax, as you know, in U.K., there is -- the entire CapEx can be used in the taxable computation in the same financial year. And on top of that, we have some additional capital allowance. So if you look at FY 2026, we would not be paying any income tax due to the capital allowance, which are being generated for the CapEx being executed planned in our U.K. operations, especially for Teal West. On the top right-hand side, we are showing you the diagram, which shows the Teal West project would be -- Teal West well would be connected to Anasuria FPSO. So the point here is we will not have -- if you look at on the total U.K. operation, we will not have any significant incremental operating expenditures because the same FPSO would be used to process the oil produced from Teal West. So for -- even for Anasuria, so there would be significant reduction in OpEx per barrel due to the Teal West oil coming to Anasuria FPSO. Okay. Let's go to the next slide, just showing that the construction has started in 2026. The electricity produced from this project would be supplied for LPC project, Low Pressure Compressor project. And the objective is to achieve fixed cost of electricity slightly lower than what we had, what we would -- what we would be spending in the absence of this solar power. And it also brings the reliability and sustainability of energy supply to our LPC project. Okay. CY will take us through the operational and financial summary.

Okay. Good afternoon, everyone. You will see on this slide some numbers for Q2 and Q1 of FY 2026. If you had -- if you look at the numbers and you look at some of the data that we have shared in Q1 and also in Q2, Q1 was a quarter where the group conducted a lot of planning activities in terms of -- from a maintenance perspective. We start -- we commenced and completed our annual maintenance program for PM3 CAA and also for Kinabalu PSC in Malaysia in Q1. And on top of that, we also completed a full field shutdown in our asset in Brunei. This I am probably announcing -- shutdown exercise in Brunei is an exercise that we will conduct only once every 4 years. We have started in September and completed later part of that. So what it means is a lot of work and a lot of costs were already incurred in Q1. It did impact production, obviously, and also uptime. And the only asset that did something similar in Q2 was North Sabah. So from a group perspective, much lesser extent. And that reflected -- that sort of activities were reflected quite well in the numbers that we have delivered for 2 quarters. Now if you look at this table, the top portion, production increased in this quarter by 10% as a result of what I have said earlier. And net OpEx has also reduced by quite a bit actually 16% from 26% across the [Technical Difficulty] -- in Q1, our offtakes were also a little bit -- our offtakes were also a little bit lower, specifically for PM3 CAA, where one offtake was deferred to this quarter. So this quarter, we had few offtakes from PM3. So quite top to be in terms of 2 quarters. So what is important is to look at the year-to-date position. Right at the top of the right-hand box, we summarized or we listed down three very key. So the first one will be profit after tax. We delivered $70 per barrel in Q2 and $20 per barrel in Q1. So in total, for 6 months at an average oil price of $71 per barrel, achieved RM 90.4 million PAT. We delivered about 4.4 million barrels of oil equivalent in first half of the year, out of which about 49% of our targeted crude oil has been sold. So we have a little bit over 50% of what we target -- what we target to achieve for FY '26 to go in the second half of the financial year. From -- for Q3, I think it is important to note that Q3 so the quarter ending March 2026. Oil prices have increased a little bit more in recent weeks. And what we would like to inform all those present is that out of 50% of our targeted crude oil sale for Q3 of this financial year have been completed. And the average -- and that was in North Sabah and also in Kinabalu. The average realized oil price for those two offtakes totaling about 65,000 barrels was about $74 per barrel. And also give an indication of Q3 we do not expect any major activities or cost-based activities to be executed in that quarter, fairly a bit quiet quarter from that aspect. And on top of that, in the U.K., this quarter, there was no offtake. The offtake has now slipped to the first week of March. We have just -- we can confirm that the offtake is slated to be between March 1 to around March 3 or 4. So that offtake will be executed in the coming days. And the issues we encountered in U.K., particularly [indiscernible] they have been fully resolved. The expenses incurred have been capitalized and the well is back online, and we are monitoring its production flow now -- its flow. So Q3 should be in a good way, assuming oil price stays around this range, the current range, which is about $70, $71. With that, I'll go -- maybe I'll go to the next page. And this is a view of our cash generating capacities for the first 6 months of the financial year. We started with $320 million cash and cash equivalents on the 1st of July 2025, and we ended with about $760 million as at 31st December 2025. You will see that a lot of money have been incurred for CapEx. But despite that, we have managed to double our cash balances during the 6 months. A lot of CapEx incurred for the Teal West project in U.K., as we all know. And there is also -- there are also two wells in PM3 CAA that we have executed. And on top of that, of course, the LPC project in Brunei. So those three would be our main drivers of our CapEx expenditure during the period. On the right-hand corner -- bottom right-hand corner, you'll see that we do still have this about USD 200 million worth of available facilities that we have not drawn down, and those are available for our immediate needs if we do need to utilize them. And our gearing ratio at this stage is still healthy, just about 0.3x debt-to-equity ratio. Yes, I think that's the result. So fairly like Lily mentioned earlier, rob -- a solid quarter, and that adds to our year-to-date -- I mean, that resulted in a fairly good year-to-date outcome so far. Okay. The next section Joyce want to bring us to.

Yes. I'll take you through the dividend slide. As you know, our current dividend practice is that we -- at the beginning of financial year, we give dividend guidance on the range of dividends that we expect to pay out based on our range of oil price. And what we do is we also pay the dividends on a quarterly basis. So if you look at our dividend trend, we have been increasing our dividend payout since our maiden dividend in 2021. It's been increasing year-on-year. And from the time we started the minimum dividend guidance for financial year 2024, we've exceeded the dividend guidance. So 2024 guidance and 2024 actual, you can see that we increased it by $0.01. And then for 2025 guidance and 2025 actual, we exceeded it by $0.01 because the guidance was $0.08. If the oil price was between $70 to $80, it was average of $73.50, but we gave $0.1 extra of $0.09. So this year's dividend guidance is $0.08 to $0.10. And you will note that we have kept the dividend rate the same, the dividend payout the same, but reduced the oil price. So the oil price has gone down by $5 per barrel. So what we are stating is that we are committing to the same dividends but lower -- at a lower oil price. And if you look at first half, as Deepak said, we paid $0.04. So we are still within the minimum dividend guidance. That translates on an annualized basis based on $0.08 to a $0.05 dividend yield. In the case of [Technical Difficulty] what Deepak mentioned about investors, we had made the announcement on the 28th of November that we were in negotiations with a few strategic investors. So we are -- since that announcement, we have received a few other proposals. And because of that, we have appointed Pareto Securities to be our financial adviser to help to assist to review all the proposals. We are taking our time about this. There is no rush because it's important that the parties are given sufficient time to do the due diligence and enough time is given for discussions and negotiations so that whatever deal that we come back with is actually going to be the most optimal for shareholders. And the objectives of bringing in strategic investors are really to give us access to opportunities that means access to assets as well as access to funding. And we believe that with the entry of the strategic investors, that represents a platform for re-rating. First, it gives us a clear pathway for growth because of the access to capital and assets that speeds up the achieving -- achievement of our 2030 mission. It also optimizes our capital structure because an injection of equity and larger equity base will support a transformative growth. And the point to be made is that we are not -- this is not something that we have to do, but it is something that we want to do. So even if it's as business as usual, it is still good enough. So it's important for us that the price -- that the share price that is issued is at a premium. We are definitely not looking at issuing shares at something that is not optimal for shareholders. So it's important that we do get a good enough premium for shareholders to really nice [ dimension ]. And the parties that we are speaking to are long-term shareholders. They intend to stay with the company because they see us as a platform to grow their investment. So there are synergies, there are formal objectives we have. And also, it strengthens our shareholder register, strengthens our shareholder base. And hopefully, that will improve our chances of increasing the blue-chip investor base as well.

So thanks again, everyone, for joining us this afternoon. So just kind of a snapshot on our performance to date and where we -- how we see things going for the financial year 2026 ending on 30th June. So we are keeping to our guidance. If you look at the guidance table over there, we are continuing to maintain the guidance we have previously provided. And as you would have seen from the production -- from the numbers already provided, we're around 48%, 49% of that production. And over the first 2 months of this quarter, some of those barrels also for the third quarter have been delivered at an increasing -- on the back of an increasing oil price environment. In terms of production also on target, we will not be able to sell all the oil we are producing. hence the sales volume a little bit lower. But in both cases, for sales volume and production, we have -- our performance will be better than last year -- last financial year. OpEx per barrel, we are also keeping to the guidance we have previously provided. And for CapEx, no change in the guidance provided at USD 205 million. Just to draw your attention to the bar charts on the right-hand side, just to show that over the last few financial years, production has been growing. And just to take -- for you to take note, yes, we are showing that production is going to potentially increase this year. The guidance is somewhere between 9 MMboe and 9.4 MMboe, which is only really a small percentage increase from last year. But with the Teal West coming online mid of this year, as mentioned by Deepak earlier on, what we're expecting to see is something north of 20% growth, 20%, 25% growth next year, okay? So next year is going to be a step change in the growth trajectory. So I think it will be north of 25%, hopefully. And so we'll be sitting at around maybe 11 million, 12 million barrels for financial year 2027. So this is -- this will be the result of the investment that we have put in and the CapEx we have put in over the course of this financial year. We will start seeing the results, what that CapEx will deliver, you'll start seeing the result next year -- next financial year commencing July. Okay? So I think that's really what I want to say for this chart. Moving on to the next chart. So TOS, so just to kind of round up Teal West, yes, good results from the well, good progress, for the project. Now just have to tie in the -- maybe I can just take you back to Slide #4. Can you go back to Slide #4? I just describe what we have to do now. So the -- yes, so if you look at the picture on the right, you will see those yellow blobs there. This is what we are going to have to install a couple of those blobs, not all four of them, I think two of them. And then we're going to pull it back the yellow line all the way back to the Anasuria FPSO vessel, which is about 4 or 5 kilometers away actually. So this is what the work that is left to be done. The well is already drilled. So the well will go -- we will just start putting the pipeline that connects up the well to the FPSO. And on the FPSO side, we have already done all the work on the surface to accept the production. So we're just doing this work, and we have to wait until the winter is over, say, probably in early April -- late March, early April, we will start. And then we'll start laying that pipeline, that 4-kilometer pipeline tied up, test everything and then start production. So that is the goal for Teal West and to get it into production. I would say, yes. Brunei Solar, yes, it's something we've been looking at. Doing the whole Brunei project when this is Solar -- the Brunei Low Pressure Compressor project, just to give you some background. So we are providing this electricity, this power into our own, it's captive use of the power. It's going to come to our own facility. So we're going to use our own power for the Low Pressure Compressor operation. And the Low Pressure Compressor that we are installing there is a very environmentally friendly compressor. So with the use of green energy, I would say, renewable energy, it even -- it's going to make it a model project. It's going to be the only project in Asia actually with this type of configuration. And the fact that there is solar hooked up to this renewable energy hooked up to this type of compressor makes it one of the most energy -- environmentally friendly projects in the world for this low-pressure compression work. So this one is something we're doing, just demonstrating that we're going to try and grow our business, our production in a responsible way. Joyce has provided the update on the corporate exercises. These are ongoing, and it's got to the point where it's serious enough for us to get a financial adviser in to properly advise the Board on all the pros and cons of each of the structures and transactions. So we need to just kind of have a look at it. And as Joyce also mentioned, this is not something we have to do. It is something that must be meaningful for the company and on its shareholders and it must be important for the future growth prospects of the company. We think what we are -- so we are in no rush, actually. We are in no rush, and we are working with reputable parties on the -- counterparties. So it's been a -- we have to -- let's say, it's a long-term decision because this is going to be a long-term partnership. So we need to be very careful about the choice and the decisions we make at this stage. So hopefully, our financial adviser is going to be able to assist us. And they are coming from a part of the world in Norway, where they are used to seeing oil and gas projects and proposals. So they are specialists in this type of area. So we are quite happy that we are working with them. In terms of the dividend, we have tried to keep to our promise about being consistent and at the same time, responsible the way we've been declaring the dividends. So hopefully, if oil prices can remain a little bit strong over the next 2 quarters, then we will fulfill all the promises we have made and let's see how we go. But I mean, even the last year, we finally -- we slightly over-delivered on what was promised. So I think -- and over the last 5 years, you can see we have consistently quarter after quarter -- quarter-on-quarter, we have delivered on the dividends. So I think that's really what we want to say. Have I forgotten any main point? Anything else, yes? Okay. So maybe now we look forward to answering your questions and we move from there.

Plans for IPP is it still on going?

Yes, yes, yes.

So yes, we are working on the projects with the various data center developers. It is -- let's say, it is getting a lot of focus in our business plan for 2026 with some, I would say, very, very tangible KPIs being set up within our business plan for this year for the team who are delivering or working on this project, yes. So this is very much part of our thinking for this year.

Tax rate now. Your provision for new CapEx.

The group's concentration of business, obviously, is in Malaysia, and that's 38% PTA. So that drives the ETR. Brunei is obviously about 55%. That contributes to about -- so I'm just breaking it down before I go to the total. And then U.K. is at this point for this financial year is about just over 100%, and that's really because of the additional -- so it's a good thing because it is due to the additional allowances that we can claim under that jurisdiction. So it creates more capital allowances to offset future taxable income. So if you compound everything altogether, I would say it's close to about 45%. Just between about 42% to 45% at this point in time based on current -- based on the estimate for this financial year.

Is asking whether can you share more about the premium relation to the entry of the new strategic investors? This is because there's a wide gap between the true fundamental value of [indiscernible] versus the market price.

Okay. So let me try and take the first one. So we also recognize the gap and because investors are strategic investors, they also recognize the gap. That is why we have been careful to -- with the parties we are working with, people who recognize the value. And let's just say we also understand that, and it's not in our interest to just look for something which is convenient. We're looking for something which is meaningful, as I said before. In terms of the time line, we don't want to drive this out beyond this financial year is what I would say. I mean no later than that will -- something will be finalized. So that's it. Either way, I think otherwise, it's too distracting.

Liza from Fidelity.

Could you give some guidance as to when you think free cash flow would inflect? Because I guess we are currently -- in quite a heavy investment CapEx period, right? But obviously, the investments, we will have higher production levels going forward as well. So just wondering when would CapEx kind of taper off and then when we can see that free cash flow from the production of the new assets coming up?

If you look at our 2024, 2025 and this year 2026, I'm just talking about the calendar year. Our CapEx for [ 2025 ] was roughly about USD 160 million. 2025 was close to USD 195 million. And in calendar year 2026 is roughly about USD 160 million. This is as per the plan. So once Teal West is done, SF30 Waterflood project is already done. LPC project, Brunei will be completed in next few months. Going forward, our CapEx plan would significantly reduce and we would be drilling and developing a few projects in PM3 side, especially and continue and completing the debottlenecking project in Kinabalu going forward. We don't have any plan to do any major CapEx in North Sabah as well. So our CapEx plan should reduce significantly to close to USD 100 million or there about USD 80 million to USD 100 million net to -- from 2027 onwards. So that should release -- that should help us to kind of build the free cash flows.

Okay. Perfect. And then just another question for me. In terms of the production growth, I know that we are around 25 to 27 KPD currently. Could you guide to us in terms of the cadence, like the additional production volumes, which fields are they coming from? And what is the target number that you are getting to by 2030?

Yes. I can talk about the next 2 years, 2026 and 2027 because we have more visibility. So let's talk about the Teal West project. So in Teal West project, the first year production should be in the range of 7,000 to 9,000 barrels per day on a 1-year basis. So if you look at our full -- incremental production would be from, let's say, 1st July 2026 to June 2027. Expected to be in the range of 7,000 to 9,000 barrels per day in that range. Then in subsequent year, it should be about 5,000 -- 4,000 to 5,000 thereabout. And then in the third year, it would be close to 1,000 to 2,000 barrels per day. So -- and then SF30 Waterflood Phase 2 project, where we would start injecting water sometime in August, September. And as you know, what injection takes -- does take some time to realize the incremental production, but we do expect some production gain in North Sabah. And with LPC projects coming in, we expect some of the wells where the production has -- so the pressure has gone down, those wells will start producing in. So we should see some incremental production in Brunei in the range of 500 to -- or close to 1,000 barrels of oil [indiscernible] we have discussed. So once you take that into consideration, I mean, our -- that would be like incremental production for 2026 and 2027.

Okay. Got it. And then just wondering because you are ramping up production as well. I mean, beyond '27, for those production, how should I be thinking about the CapEx per barrel for the additional investments that you're going to make to drive incremental production...

So we have one project, PKNB project, we should talk about it. PKNB is a cluster of four discovered gas assets where this would be -- these assets or these discoveries, gas discoveries would be developed with the evacuation plan using the -- our gas processing facility at PM3 CAA. So our plan is to start with first PNK development. FDP would be submitted to PETRONAS this year, and then we will be drilling those wells in 2027, 2028. We expect to have the first gas from this from PNK in sometime in mid or mid-2028. That's our plan. We'll start with close to 4,000 to 5,000 barrels of oil equivalent per day incremental production from PKNB in 2028. And then we will bring other two gas discoveries to production, which is NMB. And that will increase our total production from PKNB close to 10,000 to 12,000 barrels of oil equivalent per day sometime in 2032. In terms of our CapEx plan for PNK, Phase 1 CapEx is roughly about USD 170 million to USD 180 million. Our share would be close to 110 million given our 65% working interest that would be spent over the 2027, 2028. In addition to that, we have Safron project in PM3 CAA, which the team would be executing in very similar time line cap -- 2027, as PK...

Yes. I think so what I think Deepak is saying is there are sufficient projects to keep the production up and in fact, on an increasing trend. And at the same time, what we're trying to do is phase the project so that the -- as much as possible, we can get cash flows internally funding some of these CapEx projects. I think that's the idea. So -- and keep in mind, our capital allocation policy, the hierarchy of payments, what we look for, it starts off with fulfilling all banking obligations. Then dividend obligation -- dividend, we will try and do dividend and then CapEx projects, which are sanctioned. So I think those are how we are looking at the projects we have to execute over the next 5 years.

[ Alvin Syh ] from BC Asset Management is also asking, given the current softness in oil market, can we make a simple assumption of a floor of dividend payout of minimum $0.07 to $0.08 into the next 2 years?

Thanks for that question, Alvin. But actually, no, I wouldn't make that assumption. The reason is you will notice also that the volume of production is increasing. So over the next couple of years, as we said just now, especially 2027, the volume of production is increasing. So we will take that also into account. So revenues should increase even if oil prices stay about the same. If oil prices go down drastically, then hopefully, the increased volume will still give us a base an opportunity to declare base dividends. But hopefully, if the oil price stays how it is and we have increased volumes and revenue, we might be able to do something better. I think that is where we are currently -- yes. I think the objective is not to go lower than where we are.

Gas [Technical Difficulty] is coming third quarter and fourth quarter. Is it because the gas is better and less volatile than oil? Or are we waiting for the water injection to bring more on?

I will take this one. You're referring to the table, I guess, on Page 4 of the CBU. I think what is more important is if you look at the total volume in state right at the bottom. You will recall that after Brunei, MLJ fuel came on -- came into our portfolio. Our share of oil and condensate and gas is almost 50-50, and that is reflected in the volume at the bottom. But in terms of offtake -- physical offtakes, crude oil is not something you -- we can sell on a daily basis, and you can do that for gas. But for crude oil, our interval in each of the asset is around -- except for Brunei, is about one offtake per quarter. So it's just the occurrence. It's just the way these are being taken out, not -- but I think we should focus on the volumes in state. You looked at -- I mean, you'll see that they are almost 50-50 for both quarters and for the full year as well.

And when Teal West comes online, we will have our frequency of oil offtake in U.K...

I will read the second question. Earlier there was a plan to [Technical Difficulty] cluster with a new FPSO. Is it still in the consideration of the management?

We are not sure where that has come from. And there's been no plan to put PKNB to an FPSO. It is -- the plan is to take PNK back to the PM3 CAA facilities and the Phase 1 -- and there's no plan decided yet for [indiscernible]

To a level of 200,000 barrels oil equivalent in 2022 and 2023.

You mean I think I think he's talking about the Anasuria cluster offtake volumes -- Yes, each parcel, I think. Yes, I think so. I think that's what you're referring. Yes, yes. For FY 2027, because first of all, it is expected in July of this calendar year. So FY 2027 actually, each parcel may exceed even 200,000 a little bit. So we do expect it to be in the range of 220,000 to about 250,000, 260,000 for each of the offtake in the U.K. for the financial year. But it may taper down in FY 2028. Yes...

He is asking whether -- he said he listened to the MBR 2026, where Dr. Bacho was talking about ABC borderless collaboration. And he mentioned one example on BIGST plus [ Tujoh ], Berhad plus PKNB. How firm is this borderless system? And what does this mean to investors?

I think as mentioned by Dr. Bacho, ABC stands for area borderless collaboration. So basically, even though we have a number of PSCs over a certain area, the parties, the operators who are operating those separate independent PSCs will then collaborate in the -- mostly in the procurement and operations side so that the advantages of economies of scale will be achieved. So in operations, the idea will be how to optimize operations in a certain area in the terms of new CapEx projects, how to, in fact, procure and install and drill the wells altogether in one big bulk so that obviously, the cost of some of the fixed costs can be shared across a number of projects. So I think that is the objective of the ABC concept, what is being worked out on the details and also to -- all the parties are working hard so that time lines are not compromised. Sometimes when you make small things bigger, sometimes time lines might be compromised. So the idea is to keep the time lines firm. The first oil, first gas states remain as they are. But how do you phase the procurement and all of that phase -- do the procurement, but phase the work so that it all makes sense for an area rather than each PSC doing its own stuff in a silo. That's the concept, I think. And in terms of where is it, yes, on the day of the MBR, the ABC was already signed. So all the parties -- those three parties you mentioned who are involved in these PKNB and BIGST, ourselves, PETRONAS Carigali and ENEOS all signed the ABC on that day to work towards a plan to try and achieve this. I think that was the entire objective of going into Brunei. We are just seeing -- we are looking at the opportunities. You can see that we are committed to Brunei. And through the -- even the solar project that we have done in collaboration with our local [Technical Difficulty] we have worked very hard to put together in a very short space of time. So just meeting commitments, demonstrating to the government that we are there to stay and getting engaged and involved in more and more conversations about opportunities. I think it is -- it was a key objective of getting into Brunei. We see the opportunities. We have repeatedly showed this chart how the production in Brunei is falling. And so everyone is encouraged to -- or incentivized to look at how we can do more things there. You can see the chart, the table there with the 2C resource numbers, quite a large resource still in the ground. So it's all about how we kind of address it. And we're just looking at things, prioritizing which are the good opportunities, how can we do this most, I would say, optimally at the same time, make sure that it's all within our financial capacity to get it all done.

Coming from Yiobi, back to the -- just now on ABC one, right? He thinks it very interesting. The collaboration will be 100% full speed ahead from day 1? Or is it from gas production on the carbon management side or it covers everything?

I think the idea is to look at it holistically. I mean, both fields, both PKNB and some of the fields in the BIGST cluster have got some carbon dioxide production, I believe. So the idea is carbon management side as well as the production side. So it's all look at as how we do it. But again, without compromising the time lines. So the important thing is make sure that when the gas is due, it will be delivered in accordance to the timetable that we have in our own PSC...

Is asking how long would the company maintain the share buyback?

I think we have not bought back any shares. Just keep in mind our -- just keep in mind our capital allocation framework. Share buyback is almost sitting right at the bottom of the hierarchy actually. So please just kind of have a look at that and get an idea. I think best way -- different parties have different structures. So I think -- at that for the moment. But whatever the assurance we want to give is what we do is going to be good for everyone. If we are going to issue shares, there are two principles here. The party coming in has got to be ready to be a long-term investor, very long-term investor. And second is the shares are not going to be there. That's the idea. So don't worry too much about dilution. That's not going to be our frequency...

How does the group have any plans to mitigate ForEx losses as ringgit strengthens? Does the company has an estimated range for ForEx loss for FY '26 -- continues to be.

Actually, our nature of business, there is a fairly high level of natural hedge because a lot of our payments are in U.S. dollars or at least in the currency, which our -- so that's how it is. But if you look at our financial results in ringgit Malaysia, we convert them for reporting purposes actually. So a lot of them are unrealized in nature. And also a lot of them are actually intercompany balances. So you gain one site, you lose one site and all those sort of things. But all in all, there is a good level of natural hedge, and we have not decided to hedge our currencies.

Our revenues from oil and gas, both are in U.S. dollars. And on top of what CY said, all of the debt that we have taken and the repayment and interest...

So thank you again for your time. If anything, you can always reach out to my team. We appreciate your continued support and transparency, capital discipline and execution continue to guide us as we deliver long-term -- we look forward to keeping you updated and -- have a great weekend ahead, everyone.

Thank you. Good evening.