KUALA LUMPUR (May 28): Hengyuan Refining Company Bhd (KL:HENGYUAN) saw its strongest quarter in four years in the January-March period this year, driven by higher average selling prices across key refined products amid geopolitical tensions in the Middle East, supported by stable plant operations and disciplined financial risk management.

Net profit for the first quarter ended March 31, 2026 (1QFY2026) surged to RM525.55 million — its third straight profitable quarter — reversing a net loss of RM170.45 million incurred a year earlier, the downstream oil and gas company's Bursa Malaysia filing showed.

Revenue jumped 92.5% to RM4.62 billion from RM2.40 billion in 1QFY2025, underpinned by higher sales volumes. No dividend was declared with the results.

Hengyuan operates a large-scale petroleum refinery in Port Dickson, which processes crude oil into various refined petroleum products.

Hengyuan chief financial officer Yeo Bee Hwan said the company is well positioned for the year ahead, supported by operational stability and higher refining margins despite volatile global oil prices.

The group’s disciplined operational execution, stable plant performance, and proactive risk and financial management — implemented since 2024 — has enabled it to optimise its product mix and capture stronger margins, particularly for gasoil and jet fuel, she said.

“As a result, we are strongly positioned to navigate today’s increasingly volatile external operating environment, where supply and demand dynamics continue to be influenced by macroeconomic developments, including geopolitical tensions,” she said, adding the group continues to target a return to profitability this year. The group has been loss-making for the last four years.

Hengyuan shares rose 11 sen or 9.32% to RM1.29 at the time of writing, valuing the group at RM774.06 million.