KUALA LUMPUR: Hengyuan Refining Company Bhd recorded a net loss of RM124.12 million for the first quarter ended March 31, 2020, (Q1 2020) as compared to a net profit of RM21.57 million in the same period last year.
Revenue slipped to RM2.54 billion from RM2.95 billion prevuiously.
“The financial performance for the current quarter was impacted by low market refining margins primarily due to a sudden drop in global oil prices resulting from a price war and a significant drop in demand for oil products following the implementation of a Movement Control Order by the government in mid-March to curb the COVID-19 pandemic,” it said in a filing with Bursa Malaysia today.
It said sales volume for the current quarter eased to 9.9 million barrels compared to 10.3 million barrels in the comparative quarter.
“Refining margins were also adversely affected by higher crude premiums and stock holding losses, as the market saw crude prices falling from US$67 (US$1=RM4.27) to US$32 per barrel.
“These were cushioned by the effects of both the margin and commodity hedges, which the company has put in place as part of its risk management measures,” it added. -Bernama
source https://www.thesundaily.my/business/hengyuan-records-rm124m-net-loss-in-q1-XC2589011
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