Hengyuan's board approves full fund release for Euro 5 gasoil project

TheEdge Fri, Jul 05, 2019 08:31pm - 4 years View Original


KUALA LUMPUR (July 5): Hengyuan Refining Co Bhd said its board has approved the full fund release amounting to US$26.61 million (about RM110 million) for the Euro 5 gasoil project.

In its exchange filing today, Hengyuan said the project is undertaken to revamp its second hydro desulfurization unit to meet the 10 parts per million by weight (ppmw) sulphur specification by September 2020, as well as to re-instate the unit capacity to 6,300 tonnes per day.

The project, which is to be executed within its refining complex in Port Dickson, is one of the three regulatory-driven investments outlined in the company’s strategy to continue to operate as a refinery and to remain competitive in the industry, it said.

Hengyuan added that the project will be financed using a mix of cash flow generated from operations and draw-downs on its existing borrowing facilities.

Hengyuan’s share price settled five sen or 0.95% lower at RM5.21  after 205,900 shares were done. The stock has lost 15% of its value since mid-May, to bring it a market capitalisation of RM1.56 billion.

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