Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Aug 30): Hengyuan Refining Co Bhd shares fell 3.85% at mid-morning today, after the group reported that its net profit slumped 95% to RM3.28 million for the second quarter ended June 30, 2019 (2QFY19) from RM66.6 million a year ago, impacted by weaker refining margins.

At 10.15am, Hengyuan fell 18 sen to RM4.50 for a market capitalisation of RM1.35 billion.

Quarterly revenue fell 8.2% to RM3.31 billion from RM3.6 billion, the group said in a stock exchange filing yesterday.

Hengyuan said the group sold a comparable 10.5 million barrels during the quarter, but oil prices had fallen to an average of US$75 a barrel versus US$84 in 2QFY18.

Refining margins continued to be under pressure, it added.

The group recorded a gross profit margin of US$3.20 per barrel of products sold during the quarter.

Hengyuan said manufacturing and administrative expenses were in line with production volumes, and that the lower depreciation and amortisation costs were reflective of the extended useful lives of its refinery assets.

The group added it also recognised the comparative quarter finance cost which included a full amortisation of prepaid borrowing fees, upon refinancing the term loans with its existing borrowing facilities.

Hengyuan's weaker 2QFY19 earnings brings its first half net profit to RM24.85 million, representing an 83.8% decrease from RM153.41 million in the same period last year. Revenue, meanwhile, fell 5.9% to RM6.27 billion from RM6.66 billion.

      Print
      Text Size
      Share