Hengyuan returns to black in 4Q with higher sales volume

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KUALA LUMPUR (Feb 27): Hengyuan Refining Co Bhd posted a net profit of RM21.57 million in its fourth quarter ended Dec 31, 2019 (4QFY19), against a net loss of RM72,000 a year ago, mainly on higher sales volume as well as lower depreciation and amortisation costs.

Revenue for the quarter grew 25.17% to RM3.15 billion from RM2.51 billion, Hengyuan said in a stock exchange filing.

For the full year ended Dec 31 (FY19), net profit rose 13.43% to RM34.98 million from RM30.84 million as revenue climbed 12.42% to RM12.64 billion from RM11.24 billion.

Going forward, Hengyuan said refining margins and crude prices are expected to remain volatile in the near term based on published forward market prices.

"Operational efficiency, safety performance, product quality, hydrocarbon hedging and financial risk management continue to remain key areas of focus in optimising the company’s performance," it added.

Hengyuan shares closed six sen or 1.57% lower at RM3.75, bringing it about RM1.13 billion. The group saw some 390,000 shares done. The counter has fallen some 37% over the past one year.