KUALA LUMPUR (Sept 21): Hengyuan Refining Company Bhd (KL:HENGYUAN) hit a four-year high on Monday in a sudden spike in its share price, which came amid a slew of positive developments, including the renewal of a 10-year product supply deal with Shell Malaysia two weeks ago.
The spike comes as brent crude futures fell to a week’s low of US$101.7 (RM415.06) a barrel.
The company’s shares started trending upwards after it reported a surge in second-quarter (2Q) profit and said it would resume dividend payments after a four-year hiatus in August.
Hengyuan jumped 29.94%, or RM1, to close at its intraday high of RM4.34, its highest since May 2022. At its last traded price, the group had a market capitalisation of RM2.6 billion. Some 228 million shares changed hands, making it the 20th most actively traded stock on Bursa Malaysia.
The stock has more than doubled since the company announced its 2Q results on Aug 28, 2026.
The Edge has contacted Hengyuan for comment on the price surge.
The oil refinery group announced on Sept 7 that it was renewing its product supply deal with Shell Malaysia for another 10 years, spanning 2027 to 2036. The deal will run for an initial five years (2027–2031), with an option to extend it for another five years (2032–2036), subject to mutual agreement.
For the 2Q ended June 30, 2026), Hengyuan posted a net profit of RM600.54 million, compared with a net loss of RM183.24 million a year earlier. The group said the profit was its highest in four years, driven by higher operating gains and income, coupled with lower finance costs.
On Aug 28, the group announced that it was resuming dividend payments after a four-year hiatus, with an interim dividend of 10 sen per share for the quarter, payable on Sept 28.
It should be noted that its previous dividend payout was in FY2022, also at 10 sen per share.