KUALA LUMPUR (May 24): Crude oil refiner Hengyuan Refining Co Bhd's net profit for the first quarter ended March 31, 2017 (1QFY17) nearly tripled to RM264.33 million, a 175% jump from RM101.65 million a year ago, thanks to improved gross profit margin, as well as net gain on foreign currency exposure, with lower administrative expenses.

Quarterly revenue rose 56% to RM2.9 billion in 1QFY17 from RM1.9 billion a year ago, boosted by higher average product prices that increased to US$65 per barrel as compared to US$42 per barrel in the same period last year, tracking the recovery of the Brent crude oil price in 1QFY17.

However, the debt-laden Hengyuan noted that the increase in its higher average product prices was mitigated by a slight drop in sales volume to 10.1 million barrels in 1QFY17 from 10.4 million barrels sold in 1QFY16.

As at end-March, Hengyuan's total borrowings, all of which are denominated in US dollar, stood at RM1.41 billion.

On prospects, Hengyuan said refinery margins are expected to remain uncertain throughout this year.

"Operational efficiency, product quality and financial risk management will continue to remain the company's key focus in maximising margin opportunities for FY17," the company said in a filing with Bursa Malaysia this evening.

Hengyuan's share price closed at RM5.31 — the highest level since February 2016 — up six sen or 1.14% from previous day's closing, giving it a market capitalisation of RM1.59 billion.