Hengyuan posts record 1H profit of RM1.13bil, resumes dividend

KUALA LUMPUR: Hengyuan Refining Company Bhd reported its strongest first-half financial performance since 2016, announcing a record net profit of RM1.13 billion for the six months ended June 30, 2026. The company's revenue surged 71% year-on-year to RM10.06 billion, up from RM5.89 billion in the same period last year. Hengyuan's performance is a testament to its acquisition of a controlling stake in Malaysia Hengyuan International Ltd in 2016.

The company's strong performance continued into the second quarter, with net profit of RM600.54 million, marking its fourth consecutive quarterly profit and strongest quarterly performance in four years. Quarterly revenue increased by 56% to RM5.44 billion, also reaching a four-year high. The improved results were attributed to higher average selling prices for the company's main products, driven by ongoing geopolitical tensions in the Middle East.

Hengyuan's resilient plant operations and disciplined financial risk management were cited as factors contributing to the company's improved performance. The company has proposed a 10 sen per share dividend for the quarter, marking its first payout since Q2 FY22. Hengyuan's Chief Financial Officer, Yeo Bee Hwan, emphasized that the latest results marked a key milestone in the company's journey towards profitability and improved shareholder returns.

Despite global oil price volatility, Hengyuan managed to achieve its best quarterly performance since Q2 FY22, as crude oil prices remained volatile due to geopolitical tensions in the Middle East. Yeo Bee Hwan stated that the company will continue to prioritize plant reliability, operational stability, optimization of crude slate and product mix, and disciplined management of inventory, hedging, and foreign exchange exposure. Hengyuan expects its performance for the financial year to remain satisfactory.