KUALA LUMPUR: Hengyuan Refining Company Bhd
reported a net profit of RM72.4mil for the fourth quarter ended Dec 31, 2025 (4Q25), more than twelve times higher than RM5.88mil a year earlier.
Hengyuan, in a statement, said that its 4Q25 performance was supported by improved plant efficiency, which drove higher production yields, while stronger crack margins across all key products also lifted results.
Quarterly revenue rose 5% to RM3.66bil from RM3.48bil a year earlier, mainly driven by higher sales volume and improved plant stability, which offset the impact of lower product prices and the weakening of the US dollar against the ringgit.
For the financial year ended Dec 31, 2025 (FY25), Hengyuan’s net loss narrowed to RM260.25mil from RM357.56mil in FY24, despite revenue falling 24% year-on-year to RM13.17bil from RM17.21bil.
Chief financial officer Yeo Bee Hwan said the company was proud to announce one of its best quarterly results, marking a significant year-on-year improvement and a milestone in its journey towards sustained profitability.
She said that in 4Q25, the company focused on operational excellence and plant efficiency to lift production yields, while prudent financial risk management, including a recalibrated hedging strategy, supported performance.
“Moreover, following the successful completion of our rights issue exercise in October 2025 and continuous support from our financiers and crude vendors, Hengyuan now enjoys a stable feedstock supply, allowing us to optimise refinery crude intake at a lower cost of production, supporting healthier margins.
“It is clear that as a result of these persistent efforts and improvements, we are delivering momentum in returning to profitability by 2026. Hengyuan will continue to execute our strategy with operational discipline, with our aim to increase shareholder returns in the years ahead,” Yeo said.
