Hengyuan cautiously optimistic on outlook
KUALA LUMPUR: Hengyuan Refining Co Bhd (HRC), which has posted strong first-quarter results, is cautiously optimistic about its outlook amid a challenging global oil and gas sector.
In its filing with Bursa Malaysia, HRC, formerly known as Shell Refining Co (Federation of Malaya) Bhd, said its first-quarter profit for the period ended March 31 soared 2.8 times to RM279.49 million from RM101.65 million. First-quarter revenue jumped 1.5 times to RM2.93 billion from RM1.87 billion posted a year ago.
“Going forward, we’ll continue to manage our risks and protect our company,” said HRC managing director and executive director Maarten Stals.
“Generally, the trend in Asia is such that profit margins are unpredictable. We see continued signs of oversupply. The Opec (Organisation of the Petroleum Exporting Countries) has called for a meeting to further curtail supplies,” he said after HRC’s shareholders meeting, here, yesterday.
“We have, since the beginning of this year, refinanced our loan in US dollars to reduce our foreign exchange risks,” said Stals.
HRC chief financial officer Foo Ai Li said the company’s loans were partially denominated in