KUALA LUMPUR: Hengyuan Refining Company Bhd
rebounded to record a net profit of RM525.55 million in the first quarter ended March 31, 2026 (1Q 2026) from a net loss of RM170.44 million a year earlier.
In a filing to Bursa Malaysia today, the group said overall profitability improved, supported by higher production and sales volumes attributable to stable plant operations and disciplined operational execution, as well as lower finance costs.
Hengyuan Refining, which engages in refining and manufacturing of petroleum products, also posted a stronger revenue of RM4.62 billion in 1Q 2026 against RM2.40 billion in the previous corresponding quarter, driven by increased average selling prices across all main products, as well as higher sales volumes.
For 1Q 2026, Hengyuan Refining recorded earnings per share of 83.39 sen from a loss per share of 51.61 sen quarter-on-quarter.
Moving forward, Hengyuan Refining said the outlook for the downstream refining industry in the current financial year ending Dec 31, 2026, is expected to remain influenced by global demand and supply dynamics.
It added that refining margins are anticipated to remain sensitive to shifts in supply conditions, seasonal demand patterns, and developments in key refining plants and producing regions.
"While market uncertainties and global oil price volatility are anticipated to persist, the company will closely monitor market conditions and strengthen financial risk management and hedging strategies to manage volatility while continuing to focus on enhancing operational efficiency and maintaining plant stability to capture opportunities and improve overall performance," said Hengyuan Refining. - Bernama
