KUALA LUMPUR (Feb 24): Hengyuan Refining Company Bhd (KL:HENGYUAN) posted a net profit of RM72.40 million for the fourth quarter ended Dec 31, 2025 (4QFY2025), a more than 12-fold increase from RM5.88 million a year earlier.

The net profit is the highest since 2QFY2022, when the  crude oil refiner reported RM667.49 million.  

The group attributed the stronger results to improved plant efficiency, which drove higher production yields, coupled with stronger crack margins across all key products.

“The implementation of prudent financial risk management strategies, such as the recalibration of our hedging strategy, has also supported our performance,” chief financial officer Yeo Bee Hwan said in a statement on Tuesday.

Earnings per share jumped to 13.55 sen from 1.78 sen in 4QFY2024.

Quarterly revenue rose 5.07% year-on-year to RM3.66 billion from RM3.48 billion, supported by higher sales volume and plant stability, offsetting the impact of lower product prices and the weakening of the US dollar against the ringgit.

No dividend was declared for the quarter.

For the full financial year, Hengyuan’s net loss narrowed to RM260.25 million from RM357.56 million in FY2024, despite revenue falling 23.51% to RM13.17 billion from RM17.22 billion.

The decrease in revenue was mainly due to lower plant availability during the group’s scheduled maintenance exercise in 1QFY2025, and the continued weakening of the US dollar against the ringgit in the second half of the year.

Looking ahead, Hengyuan said the oil market remains highly volatile as global trade policy continues to shift rapidly and escalating geopolitical tensions in the Middle East heighten the risk of potential supply disruptions.

Oil prices are therefore expected to remain volatile, the group said.

Hengyuan shares closed five sen or 5% lower at 95 sen on Tuesday, giving the group a market capitalisation of RM570 million.