HIbiscus management discussion and analysis

Besides the financial results in an annual report, the management discussion and analysis section can tell a lot about a company.

Among the notable highlights is the oil wells in Oman which seem to be doing well. Historically on 3rd February and 6th March earlier this year when the announcement was released on Bursa`s website, the counter shot up by more than 30 cents during the first few hours and the bullish upbeat remained for a few days. The oil discovery in Oman was the first successful flow test from East of Oman in 30 years.

An area of concern however is the Norway venture. Investments there started as early as November 2013 (RM22.96 million) and a further RM 159.89 million was used to facilitate the drawdown of a government-backed loan of NOK 300 million from Skandinaviska Enskilda Banken AB (SEB). A caveat to this is that "all concessions are undergoing seismic acquisitions or processing work" and partners are expected to make a `drill or drop` decision by the third quarter of this year.

Going over to Australia, five contracts will be awarded in the third quarter of 2014. These are:
- Operations and Maintenance
- MOPU
- FSO
- Export System

- Drilling

The price of this counter is at an all time low for 2014, and the same happened back in 2013. Upside potential of say a RM0.30 cent jump in a day is possible if the results from Norway point to a drill decision.