Posted by Mikecyc > 2022-08-31 01:34 |

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Posted by BoomBerg > 2022-08-31 01:35 | Report Abuse

Naysayers RIP in hell and soon be castrated by lammolou

Posted by Mikecyc > 2022-08-31 01:37 |

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Posted by Mikecyc > 2022-08-31 01:38 |

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Posted by BoomBerg > 2022-08-31 01:38 | Report Abuse

Mickecyc you will be Dam in hell
Great liar will has his day of retribution
Karma awaits you

Posted by Mikecyc > 2022-08-31 01:40 |

Post removed.Why?

Posted by Mikecyc > 2022-08-31 01:42 |

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Posted by BoomBerg > 2022-08-31 01:42 | Report Abuse

We HY share holders will Hengah Ongah Huatah after merdeka break
Naysayers will keep drolling

Posted by Sslee > 2022-08-31 06:29 | Report Abuse

Good morning i3lurker,
I think I need to attend some accounting course for non-acccountant to better understand accounting treatment on unrealised derivatives (hedging) gain/loss in balance sheet, cash flow and P&L.

As of RM1 Billion you pocketed, I will recorded it as 2 billion R&D expenses in cash flow, 2 billion as assets in Balance sheet and Zero in P&L

1 billion for you and 1 billion for me. Fair and square CHEEEEERRRR

By the way I think you can buy or sell future refining margin, crude oil and refined products swap contracts. Hence at quarterly close date the outstanding future swap contracts at that date new quote is compare with your future swap contracts you buy/sell many months ago to get your mark to market unrealised derivatives gain/loss for your outstanding swap contracts.

Correct me if I am wrong.

Posted by Mikecyc > 2022-08-31 07:12 |

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Posted by Johnzhang > 2022-08-31 07:14 | Report Abuse

This news in the Edge is not fake

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.

Posted by Mikecyc > 2022-08-31 07:15 |

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Posted by Mikecyc > 2022-08-31 07:16 | Report Abuse

P/L NTA

2019-12 : 21.57 M. 6.7045

2020-03 : ( 124.12 M ) 7.4418 ( Note A )

2020-6 : 48.67 M. 7.0304. ( Note 1 )

2020-09 : 154.91 M 7.1637

2020-12 : 171.52 M 7.2279

2021-03 : 16.31 M. 7.1445 ( Note 2 )

2021-06 : ( 59.38 M ). 6.7511

2021-09 : ( 54.04 M ). 6.0703

2021-12 : 179.78 M 6.8399

2022-03 : 47.46 M. 6.6283 ( Note 3 )

2022-06 : 667.49 M. 5.2546 ( Note 4 )

>>>

Note 1,2,3,4 : QR is with Profit but NTA is
Reduced …


Note A : QR is with Loss but NTA is
Increased …

Posted by Sslee > 2022-08-31 07:17 | Report Abuse

In 2017 Stockraider late to the party, overstay late for the last lucky draw and end up holding the bag.

By the way, I think by next year when EU boycott Russia oil and refined products the refining margin will be very good. This time round hope stockraider don't be late again to the party.

Posted by Mikecyc > 2022-08-31 07:17 | 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

>>

Cash flow hedge reserve ( 543,706,000 )
Cost of hedging reserve. ( 786,566,000 )


Borrowing : 1,500,466,000

Capital n Reserve : 1,576,380,000

Gearing Ratio : 0.952

————————————-


Referred to Q1 Report ended March 2022 :

1. Non Current Asset :

Derivative financial assets. RM 2,976,000

2. Current Asset :

Derivative financial assets. RM 158,102,000

3. Non Current Liabilities :

Derivative financial liabiliti RM 42,581,000

4. Current Liabilities :

Derivati financial liabilitie RM 1,452,913,000

>>>

Cash flow hedge reserve ( 299,007,000 )
Cost of hedging reserve. 48,335,000


Borrowing : 1,452,913,000

Capital n Reserve : 1,988,495,000

Gearing Ratio : 0.731

Posted by Mikecyc > 2022-08-31 07:18 |

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Posted by Sslee > 2022-08-31 07:36 | Report Abuse

Mike,
From Petron corp explanation on commodity hedge:

Commodity Price Risk
Commodity price risk is the risk that future cash flows from a financial instrument will fluctuate
because of changes in market prices. The Group enters into various commodity derivatives to manage
its price risks on strategic commodities. Commodity hedging allows stability in prices, thus offsetting
the risk of volatile market fluctuations. Through hedging, prices of commodities are fixed at levels
acceptable to the Group, thus protecting raw material cost and preserving margins. For consumer (buy)
hedging transactions, if prices go down, hedge positions may show mark-to-market losses; however,
any loss in the mark-to-market position is offset by the resulting lower physical raw material cost.
While for producer (sell) hedges, if prices go down, hedge positions may show mark-to-market gains;
however, any gain in the mark-to-market position is offset by the resulting lower selling price.
To minimize the Group’s risk of potential losses due to volatility of international crude and product
prices, the Group implemented commodity hedging for crude and petroleum products. The hedges are
intended to protect crude inventories from risks of downward price and squeezed margins. Hedging
policy (including the use of commodity price swaps, time-spreads, put options, collars and 3-way
options) developed by the CRMD is in place. Decisions are guided by the conditions set and approved
by the Group’s management.

Posted by ngjack1991 > 2022-08-31 07:58 | Report Abuse

Nothing much to argue, hedging is common in o&g and whether it will be profit or lost is depending on oil trend but non deniable is crack spread is very high in Q2 and hence the highest profit recorded for most refiner. Meanwhile some said spread break down I'm Q3 but somehow it's nonsense as it's just lower than historic high in Q2 but yet still higher than covid timing. With economy open up, refining product usage will be higher due to demand increase. NTA wise yes it is reduced but if u offset the net profit from nta that was reduced 2.2249-1.374 they still earn 0.851 per share which is highest in the history.

Posted by Sharewire > 2022-08-31 08:18 | Report Abuse

Qtr3 the explosive dynamite profit 1.5billion
Due to hedging profit .

Posted by Sharewire > 2022-08-31 08:21 | Report Abuse

Hedging losses becouse crack spreads jumps to 30
No one expect to jump to 30

Posted by Sharewire > 2022-08-31 08:23 | Report Abuse

With crack spread down to 10
Hengyuan petronm will see thier profit balloon up.

Posted by Sharewire > 2022-08-31 08:25 | Report Abuse

This time hedging work for them

Posted by Sharewire > 2022-08-31 08:27 | Report Abuse

Expect share price will move toward rm30

Posted by Sharewire > 2022-08-31 08:32 | Report Abuse

Assume you are " RIGHT"
BEFORE Brent 130 now 100
Crack spread 30++ now 10++
NOW IF THERE ANY LOSSES WILL TURN INTO PROFIT

qqq3333

Unrealised losses....what is there u don't know....sslee....? Unrealised is not closed until it is closed. As conditions deteriorate in Q3, operation wise the company will do very badly....only i.diots jump in and buy the share...see u at 4 soon....

18 minutes ago

Posted by Sharewire > 2022-08-31 08:33 | Report Abuse

Like I say
QTR 3 IS EXPLOSIVE DYNAMITE PROFIT

Posted by tehka > 2022-08-31 08:33 | Report Abuse

Is it good result or bad result? Actually there is no need to argue. Wait for 1-2 weeks and see the price. If higher than 5.35 then it is good. If lower than 5.35 then it is not good loh

Posted by Sharewire > 2022-08-31 08:33 | Report Abuse

Rm30 I talking about

Posted by Sharewire > 2022-08-31 08:36 | Report Abuse

It's super crazy profit in qtr3

Posted by Sharewire > 2022-08-31 08:43 | Report Abuse

All I know Chinamen didn't shiphoned profit like some claim.
I see no reason for hengyuan to jackup profit!
They can declare losses
No one can do anything
No sharebuy back as they don't care about share price

Posted by Sharewire > 2022-08-31 08:50 | Report Abuse

Rm600m profit but some try to twist it till it's a fake profit!

Posted by Primeinvestor > 2022-08-31 08:51 | Report Abuse

sell la talk so much, let people who wants to buy buy

Posted by Investmalaysiaa > 2022-08-31 08:53 | Report Abuse

The problem is can they maintain this profit in future. Market always forward looking

Posted by Sharewire > 2022-08-31 08:56 | Report Abuse

Qtr3 profit will explosive dynamite profit due HEDGING GAIN !

Posted by Sslee > 2022-08-31 09:02 | Report Abuse

Allow me to put in this way,
If I am a refinery owner and based on past many years record the Refining margin is either poor single digit or at best USD10+ and by beginning of 2022 refining margin start to cross over to USD 10+ due to no more covid-19 lock-down and by early March spike up to USD 25-30 spot month and future month because of Russia-Ukraine war. And if you behave like MM the war will be over very soon and no more war premium, refining margin and oil will collapse then the best way you do is to buy/hedge refining margin swap for month April 2022 to Dec 2023 at fixed quoted levels acceptable to your.

As for your 30 days crude inventories and 15 days finished product inventories you can protect your inventories by buying 30 day crude oil future and selling 15 days finished product future commodity swap.

Hence you already lock in your refining margin at fixed quoted levels acceptable to you from April 2022 to Dec 2023.

The only problems is by 30/06/22 Q2 report date the spot and future refining margin already go way above (USD 40-50) compare to your fixed quoted levels (USD 25-30) acceptable to your in March hence all those future/outstanding refining margin swap contracts need to mark to market unrealized derivative losses.

As of how you entered this unrealized derivatives losses into your P&L, Cash flow and Balance sheet, you need an accountant to explain and unfortunately I am just an engineer and not an accountant.

Posted by NoviceJ > 2022-08-31 09:08 | Report Abuse

Question is will the prices go higher or lower and what are the probability
With such a environment of Russia reducing the supply the supply and demand equilibrium is tilted and do you honestly think that it will resolve soon,
Building a Glove factory compare to building a Refinery what are the difference, you tell me

At the end of the day the market will decide...........

Posted by tehka > 2022-08-31 09:15 | Report Abuse

Anyway, it is proven that probability and sslee is talking fact, and not tokok, when they projected EPS > 2. So what sslee says here carry more weight as far as I am concerned.

Posted by upshare > 2022-08-31 09:27 | Report Abuse

Tomolo dun expect the price will shut up even had good QR and high EPS.

Look like petron.. the price is going down even had good QR

Posted by Johnzhang > 2022-08-31 09:28 | Report Abuse

I tend to agree with you. There are a total of 16 CWs remain outstanding. Total unit adds up to 1.130 bil CW and average excercise price is $6.16 and average conversion ratio is 9.50.
If HY shot up to $15, IBs collective theoritical loss is 1,130,000,000 unit x(($15 - $6.16)/9.50)
=$1,051494,737 ie $1.05 billion !!!

IBs die die employing naysayers to spam fake news, create doubt to scare off buying interest on one hand and to do IDSS to depress price which is quite easy in the absence of buying interest yet.

----------------------------
Posted by BoomBerg > 7 hours ago | Report Abuse

Beware of Ib lackey pouring negative info so that price won’t go up
Or else their cw will make them lost their pants off

Posted by Sslee > 2022-08-31 09:30 | Report Abuse

Fair value of financial instruments that were outstanding as at the reporting date are detailed
below:
Contract/
Notional amount

Assets

(Liabilities)
USD’000 RM’000 RM’000
Financial assets/(liabilities) – Level 2

30.06.2022
Forward foreign currency contracts 166,690 896 -
Forward priced commodity contracts 73,182 - (1,141)
Commodity swap contracts 210,535 - (33,118)
Commodity options contracts - - -
Refining margin swap contracts 226,945 261,065 (1,751,332)
Interest rate swap contracts 51,250 - (886)

Page 11 Q2 financial report.
Commodity swap most likely is a short term commodity swap to protect the inventories.

Refinerimg margin swap which has assets of RM 261,065,000 and liabilities of RM (1,751,332,000) is most likely the long term swap contracts

Posted by Johnzhang > 2022-08-31 09:31 | Report Abuse

Correct. HY income tax payable for Q2 is $230 mil which is 26% on PBT of $897 mil !
if no real profit, why pay $230 mil tax ?


Posted by Sharewire > 45 minutes ago | Report Abuse

All I know Chinamen didn't shiphoned profit like some claim.
I see no reason for hengyuan to jackup profit!
They can declare losses
No one can do anything
No sharebuy back as they don't care about share price

Posted by Hong22 > 2022-08-31 09:41 | Report Abuse

After reading i3 comments. Is hedging just like option contract? Depends when owner want to realize profit or loss?

Posted by Silemak > 2022-08-31 09:42 | Report Abuse

Bad QR siphoned…. Good QR next QR will be bad!!!! Fantastic result …gearing high ..
Before QR out ….. hedging losses will be huge ….very soon earthquake or tsunami in Port Dickson.
Why are u guys here just go other counter … or find me a counter with EPS 222.

Posted by Hong22 > 2022-08-31 09:43 | Report Abuse

Thanks probability shared the hedging calculation excel sheet after 22Q1. Proven the theory. Hedging is lagging indeed 22Q3 will be explosive.

Posted by eagerinvestor > 2022-08-31 09:43 | Report Abuse

i guess no bonuses for IB this year. December is just around the corner

Posted by Silemak > 2022-08-31 09:45 | Report Abuse

Most of these ppl don’t own any HY shares just ignore them. We the shareholder just enjoy the ride knowing HY will outperform in year 2022!!!!!

Posted by Ayoyo > 2022-08-31 09:45 | Report Abuse

one thing is certain though, the enormous increase in receivables, be it Hy, petron or petdag...... probably domino effect of government paying the oil companies the subsidies.... in fact, petdag even warned of liquidity concerns if situation persists

Posted by beinvested > 2022-08-31 09:46 | Report Abuse

A person also enjoys his work and takes pride and satisfaction when he does well. "G-d instills in each man's heart a fondness for his trade". As G-d doesn't want any trade to die out, according to the learned teacher. All the more so a job that provides some useful, constructive service to ease the lives of one's fellow human beings. Hallelujah.

Posted by tehka > 2022-08-31 09:47 | Report Abuse

IBs cannot continue to suppress the share price to make CW worthless. They will join in to buy the mother share in order to hedge their call warrants

Posted by BobAxelrod > 2022-08-31 09:50 |

Post removed.Why?

Posted by huhaha > 2022-08-31 09:51 | Report Abuse

whatever you write doesn't change the price, tomorrow you will see the price whether this Q2 QR good or not. Let boss market determine it, not you!!