Hengyuan approves additional CAPEX of USD76 million after successful completion of MTA
Hengyuan approves additional CAPEX of USD76 million after successful completion of MTA
- Additional CAPEX for EURO 4M project in line with expediting long lead equipment and upgrading the project to EURO 5M capabilities.
- Completed Major turnaround (MTA) ahead of schedule and under budget; MTA is the largest scheduled turnaround in refinery’s history
Port Dickson, 2 November 2018 -- Regional major oil-refining company Hengyuan Refining Company Berhad (Hengyuan or “the Company”; Bloomberg: HYR:MK; Reuters: HENY.KL) today approved additional capital expenditure (CAPEX) of USD76 million or RM318 million for its Mogas project to enable the refinery to comply to future fuel specification changes.
As announced by the Company to Bursa Malaysia, the additional CAPEX for the Euro4M Mogas project is provided 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.
With the additional CAPEX, the Company’s investment in the Euro4M Mogas project increased to USD211 million or RM882 million, from USD135 million or RM565 million announced in June 2017.
The upgraded Euro4M Mogas project is targeted for completion in the first quarter of 2020.
Separately, Hengyuan has successfully completed its planned 10-week MTA on 21 October 2018, ahead of schedule and below the stipulated 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.
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Wang YouDe, Chairman, Hengyuan Refining Company Berhad: "After comprehensive negotiations for additional enhancement in the Mogas project, we are now in a position to undertake a larger scope of activities and establish a viable timeline for the project, which will significantly boost the efficiency and in turn the long-term profitability of the refinery. In addition, the project design has been enhanced to enable the plant to produce Euro 5M-compliant products when Malaysia’s fuel specifications are further upgraded. We are also very pleased with the success of our recent MTA completion, as the organisation has worked tirelessly not only in overcoming the myriad of challenges, but also being able conduct the MTA effectively and efficiently, which is a testament of our technical ability as a regional refinery." |
About Hengyuan Refining Company Berhad
Hengyuan Refining Company Berhad (HRC), formerly known as Shell Refining Company (Federation of Malaya) Berhad (SRC), was incorporated in Malaysia on 19 September 1960. The company was listed on the Main Board of the then Kuala Lumpur Stock Exchange (now known as the Main Market of Bursa Securities) on 29 October 1962.
On 22 December 2016, Malaysia Hengyuan International Limited (MHIL) acquired 51.0% equity stake in SRC from Shell Overseas Holdings Limited for USD66.3 million. MHIL is wholly-owned by Heng Yuan Holdings Limited, which in turn, is a wholly-owned subsidiary of Shandong Hengyuan Petrochemical Company Limited. Hengyuan Refining Company Berhad manages and operates a refinery in Port Dickson, Negeri Sembilan with licensed production capacity of 156,000-bpd. The refinery is involved in the refining and manufacturing of petroleum products, and provides employment for more than 500 individuals comprising of staff and contractors
Issued for and on behalf of HENGYUAN REFINING COMPANY BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd. For media enquiries, please contact:
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Islamiah.Idris@hrc.com.my
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Ms. Julia Pong
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T: +603- 27111391 / +6012-3909 258
Ms. Kai Pieng
Kai-Pieng.Fong@hrc.com.my
T: +6017-398 3358
Mr. Hanif Kamarudin
hanif@aquilas.com.my
T: +603- 27111391 / +6012-3909 258