{"id":19041,"date":"2026-04-24T16:55:55","date_gmt":"2026-04-24T08:55:55","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=19041"},"modified":"2026-06-09T18:52:48","modified_gmt":"2026-06-09T10:52:48","slug":"3-og-companies-to-bank-on-high-oil-prices","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hans\/3-og-companies-to-bank-on-high-oil-prices\/","title":{"rendered":"3 O&G Companies to Bank On High Oil Prices"},"content":{"rendered":"

The global stock market downturn has been brutal since the Iran-Israel-U.S. conflict broke out. While it has recovered somewhat after the ceasefire, investors are still on the sidelines. However, there is one sector that has gained \u2013 oil & gas.<\/span><\/p>\n

In this article, we detail three oil & gas companies in Malaysia and Singapore that could benefit from high oil prices.<\/span><\/p>\n

Investment Thesis and Catalyst<\/span><\/h2>\n

Since the conflict started, Brent crude oil prices have risen to as high as $110 per barrel. Since the ceasefire, it has declined back to about $98 per barrel, but remains higher than pre-conflict levels of about $65 to $75 per barrel.<\/span><\/p>\n

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Source: Investing.com<\/span><\/p>\n

For oil & gas companies, high oil prices mean they can sell at higher prices. This increases their profit levels and margins.<\/span><\/p>\n

For example, if an O&G company produces a barrel of crude oil at $40 per barrel, it makes about a 33% gross profit margin ($20 \/ $60) if it sells at $60 per barrel. However, if prices rise to $100 per barrel, its gross profit margin increases to 60%.<\/span><\/p>\n

Higher profits from oil & gas companies also provide a boon to companies that provide essential services to the sector, including storage, shipping, logistics and port terminal services.<\/span><\/p>\n

Hibiscus Petroleum<\/span><\/h2>\n

Hibiscus Petroleum is engaged in the upstream exploration of oil & gas, with assets in Malaysia, the United Kingdom, Australia, Vietnam, and Brunei.\u00a0<\/span><\/p>\n

Since the conflict broke out, Hibiscus\u2019s share price has risen from RM1.60 on 27 February to as high as RM2.39 on 9 March. It has since settled at about RM2.16 as of 14 April, up by 35%.<\/span><\/p>\n

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Investors\u2019 interest in Hibiscus is straightforward: an increase in both oil price and production for 2H 2026 (Jan 2026 \u2013 June 2026).<\/span><\/p>\n