Hengyuan Refining proposes RM5b unrated medium-term notes

KUALA LUMPUR (July 6): Hengyuan Refining Company Bhd is planning to establish a RM5 billion unrated medium-term notes programme, according to the Securities Commission Malaysia’s list of corporate bonds and sukuk under the lodge and launch framework.

Notably, Aminvestment Bank Bhd and Maybank Investment Bank Bhd have been appointed as the principal advisers for the proposed corporate exercise.

However, the group did not comment further on the proposed exercise when contacted by The Edge.

The group’s net profit surged 191% to RM47.46 million for the first quarter ended March 31, 2022, from RM16.31 million last year, as quarterly revenue jumped more than twofold.

Lower net foreign exchange loss and lower manufacturing expenses contributed to the improved quarterly net profit.

The increase in revenue for the quarter to RM4.95 billion, up 125.36% from RM2.2 billion a year prior, was in line with higher market product prices and stronger local demand.

Shares in Hengyuan were 26 sen or 5.63% lower at RM4.36 at the time of writing on Wednesday (July 6), giving it a market capitalisation of RM1.31 billion.