Hengyuan Refining Company Berhad Reports Record First‑Half 2026 Earnings and Resumes Dividend

1. Financial Highlights

  • Net profit for the first half of FY 2026 (1H26): RM 1.13 billion, a 10‑year high.
  • Revenue for 1H26: RM 10.06 billion, up 71 % year‑on‑year (YoY) from RM 5.89 billion in the corresponding period of FY 2025.
  • Net profit for the second quarter ended 30 June 2026 (2Q26): RM 600.54 million, the highest quarterly profit in four years and the fourth consecutive profitable quarter.
  • Quarterly revenue for 2Q26: RM 5.44 billion, a 56 % YoY increase.
  • Other operating gains: RM 38.87 million in 2Q26 (up from an operating loss of RM 22.69 million a year earlier).
  • Other income: RM 4.36 million in 2Q26, nearly tripling RM 1.46 million a year earlier.
  • Finance costs: Declined, contributing to the profit lift.

2. Dividend Announcement

The Board of Directors has approved a dividend of 10 sen per share. This is the first dividend paid since the 2022 fiscal year, marking a return of cash to shareholders after a four‑year pause.

3. Drivers of Strong Performance

  1. Higher average selling prices for key refined products, supported by ongoing geopolitical tensions in the Middle East that have kept crude prices elevated.
  2. Stable refinery operations across the company’s facilities, enabling efficient conversion and minimal downtime.
  3. Disciplined financial risk management, including effective hedging and currency controls, which reduced finance costs and improved profitability.

These factors combined to produce a significant earnings surge relative to the previous fiscal year.

4. Management Commentary

Yang Mei Huan, Chief Financial Officer, noted that despite volatile global oil prices, the group maintained focus on rigorous operational execution and optimal crude‑product mix. She emphasized continued commitment to refinery reliability and stringent inventory, hedging, and foreign‑exchange controls, projecting a satisfactory performance for the remainder of FY 2026.

5. Market Context

  • Market capitalization: MYR 1,170,087,808.
  • Price‑to‑earnings ratio: 4.7.
  • Stock performance (27 Aug 2026): Closing price at MYR 1.95, within the 52‑week range of MYR 0.72–2.12.

The company’s recent results reinforce its position as a leading Malaysian oil refiner, with a strong focus on sustainable operations and community contributions.