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08 I 2020 ANNUAL REPORT I ABOUT hRC

ChAIRmAN’S STATEmENT

2020 DIvIDENDS We intend to do so by honing a competitive edge through
operational excellence, reducing operational costs and
The extraordinary pandemic situation continues to create expanding our potential in inland sales through relationship
uncertainties within the industry. As things stand, the Board’s consolidation with existing partners, developing a new
view is to maintain a conservative set of assumptions in cash customer base and expanding existing channels. We also
flow projections, business forecasts and other reviews as remain vigilant in ensuring that the health and safety of our
required by the Companies Act 2016. employees are not exposed to the threats of COVID-19 at site.
Nevertheless, after much deliberation and in appreciation of the
support shown by shareholders, the Board approved an interim See page 39 for more details on our outlook and goals.
dividend of RM0.04 per share for the financial year ended 2020.
Going forward, the combination of strengths and
opportunities that we intend to leverage on are summarised
as follows:
• Hedging systems for margin, inventory and foreign exchange
which are in place and working well.
• Continued implementation of operational enhancement
plans to improve efficiency and reliability.
• Productivity improvements in business processes through
digitalisation.
• Potential future upside for refinery margins due to closure
of regional refineries.
• Exploring synergies within the group of companies on supply
chain and service opportunities.

• Potential expansion of customer base and increasing sales
with existing customers.

ACKNOWLEDgEmENTS

The Board and I take this opportunity to acknowledge the
dynamic leadership of Mr Erkki Tapio Ranta, who took up the
Golden view of the refinery at sunset.
role, duties and responsibilities as Chief Executive Officer on
1 March 2020. His vast experience in the oil and gas industry
LOOKINg FORWARD for over 29 years has been integral towards instilling teamwork
and helping steer HRC through this unparalleled time.
With our robust and tested Business Continuity Plan in place,
disruptions of the Movement Control Order had minimal impact We are thankful for our people’s support and contribution
to our day-to-day operations. Meanwhile, we continue to through the challenging period and grateful to our shareholders
make progress with our projects in accordance with the new and stakeholders for their unwavering faith and patience in
completion timeline prescribed by the Malaysian Government. HRC’s business plans and strategies. Let’s all stay safe, strong
and smart as we brave the uncertainties ahead and navigate
See page 34 for more details on our key projects. our way through current challenges, shaping the way towards
an era of new energy solutions.
As we cannot determine how long the COVID-19 pandemic
would remain as a risk to our economy and society, our priority
in 2021 is to assure successful and sustainable operations Wang, YouDe
whilst investing in opportunities to thrive in the mid-term.
Chairman