Posted by Mikecyc > 2022-08-30 18:24 |

Post removed.Why?

Posted by profit profits > 2022-08-30 18:26 | Report Abuse

so long as economy activities increase after mco, oil consumption will create more profit lah.

Posted by MoneyMakers > 2022-08-30 18:28 |

Post removed.Why?

Posted by MoneyMakers > 2022-08-30 18:29 |

Post removed.Why?

Posted by stevenckheng > 2022-08-30 18:33 | Report Abuse

what is this hedging loss from ?

Posted by Tantoro > 2022-08-30 18:39 | Report Abuse

MM KKK KKS
KAKIKONG KAKISONG

Posted by Rabbit2 > 2022-08-30 18:45 | Report Abuse

Cost of hedging = forward points = basis swap spread
This is the problem when the contracts entered are long tenured > 2 years

Posted by anthonytkh > 2022-08-30 18:48 | Report Abuse

Holy wackamoley! Excellent profits, huh? Gratz to those entitled to the 10cts divvy.

But fundamentals got worse… omg

Posted by Sharewire > 2022-08-30 18:51 | Report Abuse

That what you say in qtr1,hedging losses 1billion bring forward to qtr2.
Now qtr2,you say bring forward qtr3
You are master of illusion.
MoneyMakers

P&L - Other comprehensive (expense)/income: items that will be reclassified to profit or loss @ hedging loss (-1,079,600,000)

Thats hedging loss alrdy locked-in for Q3 (hedging contract alrdy expire after Q2 June)

18 minutes ago

Posted by Rabbit2 > 2022-08-30 18:53 | Report Abuse

Derivative loss (cost of hedging) for sure will reduce dramatically if taking today's date as a cutoff.

Posted by Sharewire > 2022-08-30 18:54 | Report Abuse

Qtr3 will be more explosive!
Due to hedging Gain!

Posted by information > 2022-08-30 18:55 | Report Abuse

Ok, its because the margin had expanded. This means when the margin reduces later it will even out (become zero). They have time to close the position till end of 2024.

is that right Rabbit2?

Posted by Rabbit2 > Aug 30, 2022 6:45 PM | Report Abuse

Cost of hedging = forward points = basis swap spread
This is the problem when the contracts entered are long tenured > 2 years

Posted by Sharewire > 2022-08-30 18:59 | Report Abuse

Moneymaker you say crack spreads go up also lose money and crack spread drop also lose money.Then wat to do?

Posted by Sharewire > 2022-08-30 19:02 | Report Abuse

Moneymaker say Chinamen won't declare high profit as they shiphoned money to china.Now wat?

Posted by Sharewire > 2022-08-30 19:07 | Report Abuse

Moneymaker if tenure is 2 years than WHAT?
LOSSES TURN INTO EXPLOSIVE DYNAMITE PROFIT!!!!!!
Why?

Posted by Sharewire > 2022-08-30 19:09 | Report Abuse

Like you say meh moneymaker crack spread drop!
Hedging turn into EXPLOSIVE DYNAMITE PROFIT.

Posted by donnybelowski > 2022-08-30 19:16 | Report Abuse

Follow otbkyy and u will make money. Uncle bought a lot recently. Waiting for price to go higher and higher. Buy

Posted by Sslee > 2022-08-30 19:28 | Report Abuse

Refining margin swap contracts 226,945 261,065 (1,751,332).

My take on this refining margin swap contracts is HRC book the refining margin swap contracts for long term at maybe USD20/barrel. At 30/06/2022 this spot margin is USD 40/barrel hence this future refining mark to current spot margin will show a huge loss of USD 20/barrel.

So moving forward if Refining margin spot is now USD30/barrel then realised swap contracts loss is USD 10/ barrel but the physical mqrket HRC make USD 30/barrel hence overall still make USD20/barrel.

Moving forward again the Spot Refining margin is now USD10/ barrel. The swap contacts will realised a gain of USD 10/barrel but physical spot only earned USD 10/ barrel hence overall still make USD20/barrel

Posted by Sharewire > 2022-08-30 19:31 | Report Abuse

Like moneymaker say
Sharewire

That what you say in qtr1,hedging losses 1billion bring forward to qtr2.
Now qtr2,you say bring forward qtr3
You are master of illusion.
MoneyMakers

P&L - Other comprehensive (expense)/income: items that will be reclassified to profit or loss @ hedging loss (-1,079,600,000)

Thats hedging loss alrdy locked-in for Q3 (hedging contract alrdy expire after Q2 June)

18 minutes ago

Posted by 888STOCK888 > 2022-08-30 19:32 | Report Abuse

HENGYUAN & PETRONM BOTH LIMIT UP ON THURSDAY & FRIDAY!!! =D

HENG~

ONG~

HUAT AH~ =D

Posted by Sharewire > 2022-08-30 19:34 | Report Abuse

Moneymaker do you know why Chinamen and Filipino boss do hedging?
They gamble?
They only try to protect future profit by hedging.
They didn't expect crack spread go up to 30++.
Their hedging probably at 10 and suffer hedging losses hengyuan petronm due to crack spread go up 30++.

Posted by information > 2022-08-30 19:35 | Report Abuse

this is also what i think so and they have the option to bring it into the profit or loss statement whenever they want till the maturity date

Posted by Sslee > Aug 30, 2022 7:28 PM | Report Abuse

Refining margin swap contracts 226,945 261,065 (1,751,332).

My take on this refining margin swap contracts is HRC book the refining margin swap contracts for long term at maybe USD20/barrel. At 30/06/2022 this spot margin is USD 40/barrel hence this future refining mark to current spot margin will show a huge loss of USD 20/barrel.

So moving forward if Refining margin spot is now USD30/barrel then realised swap contracts loss is USD 10/ barrel but the physical mqrket HRC make USD 30/barrel hence overall still make USD20/barrel.

Moving forward again the Spot Refining margin is now USD10/ barrel. The swap contacts will realised a gain of USD 10/barrel but physical spot only earned USD 10/ barrel hence overall still make USD20/barrel

Posted by Sharewire > 2022-08-30 19:36 | Report Abuse

And NOW THE EXPLOSIVE DYNAMITE PROFIT IN QTR3 crazy!
Why ?
NO MORE HEDGING LOSSES.

Posted by Russel > 2022-08-30 19:37 | Report Abuse

What a spectacular results!!! EPS RM2!!!

Posted by Sharewire > 2022-08-30 19:38 | Report Abuse

This what they say in qtr1 1
Bring forward losses!!!
Which is not true.

qqq3333

to be reclassified to Pl in future.............1 billion loss................... lol..................................

18 minutes ago

Posted by searchingmoney > 2022-08-30 19:39 | Report Abuse

ade nampak rr88 lately...?

Posted by Sharewire > 2022-08-30 19:40 | Report Abuse

Qtr2 profit just small
Qtr3 profit just crazy rm1.5billion at least due to crack spread at stabilise at 10.
No more hedging losses!

Posted by Rabbit2 > 2022-08-30 19:48 | Report Abuse

@Sslee you are right! The marked to market loss on spot element is reflected in the cash flow hedge reserve. However the marked to market loss on forward point element (i.e. basis swap spread) is reflected in cost of hedging reserve which I explained to your friend OTB 3 months ago.

HRC is applying MFRS 9 hedge accounting rule i.e. the noise created in basis swap spread is reflected in other comprehensive income.

Posted by Goldberg > 2022-08-30 19:52 | Report Abuse

Hengyuan Refining posts record net profit in 2Q, declares 10 sen dividend

theedgemarkets.com

August 30, 2022 19:38 pm +08

KUALA LUMPUR (Aug 30): Hengyuan Refining Co Bhd posted an all-time high net profit of RM667.49 million in the second quarter ended June 30, 2022 (2QFY22) compared to a net loss of RM59.38 million a year ago.

The crude oil refiner attributed the remarkable achievement to its improved refining margin, contributed by better cracks for motor gasoline (mogas), gasoil and jet fuel, as well as stockholding gains fuelled by market sentiments over the oil supply and demand imbalance.

On the heel of this, quarterly earnings per share shot up to 222.49 sen versus a loss per share of 19.79 sen last year, the group’s bourse filing showed.

Likewise, quarterly revenue climbed by over two folds to RM6.89 billion from RM2.5 billion a year ago, on the back of higher oil product prices and sales volume.

The group noted that oil product prices in 2QFY22 doubled to US$151 per barrel (bbl) from US$75 bbl, while sales volume improved by 35% as a result of stronger demand.

Hengyuan declared an interim dividend of 10 sen per share — with a Sept 30 ex-date — to be paid on Oct 25.

For the first half of the year (1HFY22), Hengyuan said its net profit ballooned to RM714.94 million from a net loss of RM43.07 million a year ago while revenue more than doubled to RM11.85 billion from RM4.7 billion.

The solid earnings for the cumulative period were underpinned by strong oil product prices — an average of US$115 bbl in 1QFY22 and US$151 bbl in 2QFY22 — coupled with resilient market demand.

“The increase in refining margin was driven by better cracks for mogas, gasoil and jet fuel, following sanctions on Russian oil products,” the group added.

Commenting on its prospects, Hengyuan said the oil refining industry will continue to be challenged by volatility in the global oil market, but notes that it is actively monitoring current market conditions and will continue its efforts to focus on operational efficiency, product quality, hydrocarbon hedging and financial risk management to optimise its performance.

Shares in Hengyuan closed down five sen or 0.93% at RM5.35, giving the group a market capitalisation of RM1.6 billion.

Posted by Rabbit2 > 2022-08-30 19:52 | Report Abuse

The cost of hedging will not be reclassified to P&L unless the contract is terminated. My feel is that it will be zerorised upon maturity of the contracts.

Posted by Mikecyc > 2022-08-30 19:55 |

Post removed.Why?

Posted by Mcaresdk91 > 2022-08-30 19:56 | Report Abuse

all time high profit.esok LU

Posted by tehka > 2022-08-30 19:58 | Report Abuse

https://www.theedgemarkets.com/article/hengyuan-refining-posts-record-net-profit-2q-declares-10-sen-dividend

Posted by Sslee > 2022-08-30 20:01 | Report Abuse

HRC: Operating profit before changes in working capital RM 939,171,000

Petronm: Operating profit before changes in working capital RM 637,742,000

Posted by Sharewire > 2022-08-30 20:09 | Report Abuse

Many mislead info and bad actor
stockraider

Do not be naive loh!

For Petron it is applicable that its derivative it use is a form of instrument for hedging & it can be reversed loh!

On the otherhand for HRC its derivative instruments are a form of device to siphon money mah!

Just becareful loh.....for hengyuan it may not be completely applicable loh!

Posted by huhaha > 2022-08-30 20:10 | Report Abuse

when i read above comments, laugh die me... below these 2 items, not an accountant don't comment please.. really laugh die me...huhahaha
1. "items that will be reclassified to
profit or loss"
2. forward contract

Posted by Mikecyc > 2022-08-30 20:12 | Report Abuse

Referred to Latest Q2 Report ended June 2022 :

1. Non Current Asset :

Derivative financial assets. RM 14,363,000

2. Current Asset :

Derivative financial assets. RM 247,598,000

3. Non Current Liabilities :

Derivative financial liabiliti RM 480,908,000

4. Current Liabilities :

Derivati financial liabilitie RM 1,305,569,000

Posted by Mikecyc > 2022-08-30 20:15 | Report Abuse

>> The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months; it is classified as current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

Posted by Mikecyc > 2022-08-30 20:18 |

Post removed.Why?

Posted by Sslee > 2022-08-30 20:18 | Report Abuse

The party just started.

Everyone are invited and don't be late otherwise you will miss the boat

Posted by miracle_trader > 2022-08-30 20:19 | Report Abuse

HY price will break all time high before year end.

Posted by Sslee > 2022-08-30 20:19 | Report Abuse

What will happen to refining margin when by begining of Next year EU boycott Russia oil and refined products?

Posted by Mikecyc > 2022-08-30 20:20 |

Post removed.Why?

Posted by Mikecyc > 2022-08-30 20:23 |

Post removed.Why?

Posted by MoneyMakers > 2022-08-30 20:26 | Report Abuse

Item A22: free cash/bank balance drop from (Q1) 775Mil to (Q2) 276Mil

Item A20: As of 30 June, company REFINANCING its 1.5Bil loan

P/s: HY got cashflow problem or what

Posted by tehka > 2022-08-30 20:30 | Report Abuse

Moneymaker, IDSS is available for you to short sell on Thursday if you worry about HY cash flow problem

Posted by Sslee > 2022-08-30 20:35 | Report Abuse

qqq3 if you do not like HRC you can buy Petronm.

By the way I remember your children is chartered accountant you can ask your children to explain this derivatives realised and unrealised gain/loss treatment in P&L and Balance sheet.

Posted by Sslee > 2022-08-30 20:41 | Report Abuse

The problems with increase in receivables is because our PN government is late to pay Petrol stations retail sales the subsidy reimbusement payment. ( You can check the Petdeg account)

The working capital increase because the inventories value increase due to price increase in crude oil and refined products.

Posted by Zhuge_Liang > 2022-08-30 20:41 |

Post removed.Why?

Posted by Sslee > 2022-08-30 20:47 | Report Abuse

deMusangking,
Long time no see, you are welcome to join the sing sing and song song