Page 134 - HRC_AR2020

132 I 2020 ANNUAL REPORT I financial reports

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (CONTINuED)

33 DiViDenDs

On 26 February 2021, the Directors declared a single-tier interim dividend of RM0.04 per share, amounting to RM12,000,000
in respect of the financial year ended 31 December 2020. The dividend is payable on 15 April 2021 to shareholders registered
on the Record of Depositors at the close of business on 23 March 2021. These financial statements do not reflect the interim
dividend which will be accounted for in the financial year ending 31 December 2021.
The Company did not declare any dividend for the financial year ended 31 December 2019.

34 siGnificant eVent
The Company has recorded 43.2% lower revenue in 2020 as compared to 2019, mainly due to the lower sales volume
coupled with lower quoted product prices resulted from the implementation of lockdown and travel restrictions in Malaysia
as well as globally. Notwithstanding the unprecedented challenges faced, the hedging strategy undertaken by the Company
has protected the Company’s gross profit margin and uplifted the gross profit margin. To manage liquidity, the Company has
utilised the existing financing facilities and obtained additional accounts receivable factoring facility as disclosed in Note 4(c).
Based on the liquidity assessment performed for the next 12 months from the reporting date, the Directors concluded that
the Company would have sufficient cash flows to fulfill its obligations and finance its ongoing operations. The Company has
also carried out an impairment review on the refinery assets and an assessment on the net realisable value of its hydrocarbon
inventories in view of the impact of COVID-19 on the business activities. The result of the assessments are set out in Note 3(a)
and Note 3(c).
The rollout of global COVID-19 vaccination program has raised the hopes for the turnaround in the pandemic in 2021.
However, the potential renewed waves and the virus mutations may continue to loom the world’s economies with uncertainties.
The Company will continue to monitor the situation, take appropriate and timely actions to minimise the impact brought by
the pandemic in order to ensure the sustainability of the business.

35 approVal of financial stateMents

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors on
26 March 2021.