Major Turnaround Success and Revised Full Fund Release of USD211 million +/- 10% for the Euro4M Mogas Project
The Board of Directors of Hengyuan Refining Company Berhad (“HRC” or “Company”) wishes to announce that HRC successfully completed its planned 10-week Major Turnaround (“MTA”) on 21 October 2018, ahead of schedule and below budget by USD1.5 million or RM6 million. The MTA at the Company’s Port Dickson refinery was the largest in its 55-year history.
Separately, the Board of Directors approved an increase in funding of USD76 million for the Euro4M Mogas project (“Project”), bringing the total investment to USD211 million +/- 10%.
The additional capital expenditure will be used to expedite long lead and additional equipment for a larger scope of activities and to upgrade the Project to deliver refining capability for the production of both Euro4M and future Euro5M mogas specifications when required.
HRC anticipates completion of the upgraded Project by Quarter 1, 2020.
The previous announcement on the final investment decision of the Project of USD135 million +/- 10% was made through Bursa Malaysia Securities Berhad on 16 June 2017.
2. FINANCIAL EFFECTS
The Project will be financed using a mix of cash flow generated from operations and further drawdowns of existing loans.
3. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the directors or substantial shareholders of HRC or persons connected with them have any interest, whether direct or indirect, in the revised full fund release.
4. STATEMENT BY DIRECTORS
HRC’s Board of Directors is of the opinion that the above revised full fund release decision is in the ordinary course of business and is in the best interests of the Company.
5. APPROVALS REQUIRED
This investment decision is not subject to the approval of shareholders of HRC or any relevant authorities.
This announcement is dated 2 November 2018.
|Company Name||HENGYUAN REFINING COMPANY BERHAD|
|Date Announced||02 Nov 2018|
|Category||General Announcement for PLC|