Diverging fortunes of Hengyuan and Petron Malaysia
KUALA LUMPUR: Two Port Dickson-based refiners are seeing sharply diverging fortunes on Bursa Malaysia, with Hengyuan Refining Co Bhd outperforming Petron Malaysia Refining & Marketing Bhd as investors weigh their ability to benefit from elevated refining margins.
Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd have shown contrasting fortunes on Bursa Malaysia, with Hengyuan outperforming Petron. Hengyuan's shares have surged over four times this year, reaching RM3.49 by September 14, while Petron's shares have only increased by about 5.7% to RM3.53. The divergence is attributed to Hengyuan's ability to benefit from improved refining margins and rising US-Iran tensions, while Petron continues to face disruptions from the collapse of its product jetty at its Port Dickson refinery.
Petron Malaysia's additional fuel retail and commercial supply businesses also dilute its exposure to the refining sector, limiting its ability to capitalize on the current refining-margin upcycle.
Brief written by urgent.news from New Straits Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
