KUALA LUMPUR (Sept 7): Hengyuan Refining Company Bhd (KL:HENGYUAN) has agreed on key terms to renew its product supply deal with Shell Malaysia for another 10 years, from 2027 to 2036.

In a filing with Bursa Malaysia Monday, Hengyuan said it signed a binding term sheet with Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd.

The deal will run for an initial five years (2027–2031), with the option to extend for another five years (2032–2036) if both sides agree.

Hengyuan said the term sheet establishes the commercial framework from which a definitive agreement will be negotiated and executed.

“The arrangement is expected to support the continued placement of HRC's refinery products and the stability of its refinery operations,” said the company in the filing.

The group is principally involved in the refining and manufacturing of petroleum products such as liquefied petroleum gas (LPG), propylene, gasoline or petrol, jet fuel, gasoil or diesel and sulphur. It was formerly known as Shell Refining Co (Federation Of Malaya) Bhd before the name change in 2017 after Hengyuan International Ltd bought Shell’s 51% stake in the group.

For the three months ended June 30, 2026 (2QFY2026), the oil refiner posted a net profit of RM600.54 million compared with a net loss of RM183.24 million a year earlier, driven by higher other operating gains and income, coupled with lower finance costs. The group’s revenue rose by 55.69% to RM5.44 billion from RM3.49 billion a year earlier.

Shares of Hengyuan were down by 11 sen, or 3.8%, to RM2.82 on Monday’s market close, giving the group a market value of RM1.69 billion. Year-to-date, the stock has jumped more than twofold.