Page 31 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 29

PERFORmANCE

REvIEW

Year 2020 was a challenging year for hRC. generally, all sectors were disrupted by the COvID-19
pandemic and consequently by the mCO restrictions. Although there was minimal interruption
to our day-to-day operations because the oil and gas sector is an essential sector in malaysia,
consumption was reduced due to the slowdown in activities by industries and households
in compliance with travel restrictions and stay-at-home orders issued by the government.

Additionally, HRC faced several incidents such as a tank fire
incident in May, an instrument air compressor card failure that
led to a small fire incident in August and an underground
pipeline leakage in October. These affected plant availability and
resulted in increased unplanned downtime (UPDT) for the year.
While we were behind our targets in safeguarding stable
refinery operations, we were successful in securing our other
core priority – the health and safety of our employees and
contractors. HRC has been working closely with all of our
contractors and partners to ensure all preventive measures
were effectively put in place and strictly adhered to by our
employees and contractors.
Managing costs was another key achievement. HRC managed
to compensate the very low regional refining margin through
hedging gains. Note: Photo taken prior to MCO which started on 18 March 2020.
With HRC’s strong Business Continuity Plan in place, our
distribution channel continued to be intact. We remained STRATEgIC DIRECTION 1
focus on strengthening our operations in Malaysia by honing Nurture a healthy Company Culture
our competitive edge through operational excellence, reduced
operational costs and widening our customer base. We also Towards uplifting company culture, we continue to instil
expanded our inland sales by adding new customers and core values of Integrity, Collaboration, Accountability,
growing existing channels. Entrepreneurial and Respect in all communication with our
people. As a follow through on the company-wide People
Survey 2019 outcomes, action was taken to create further
PERFORmANCE UPDATES UNDER OUR understanding and awareness on Company Values through
REDEFINED STRATEgIC FRAmEWORK strengthened engagements with employees.

New engagement channels implemented during the year
People & Leadership included a quarterly virtual townhall, quarterly QHSSE
e-newsletter, monthly CEO e-letter and afternoon chats
We continually uphold the belief that the people of HRC with the Leadership Team. As many employees worked from
are our most important asset and the strongest driver home during the year due to the MCO, the CEO monthly
of sustainable growth. We aspire to sustain resilient and e-letter to employees acted as another important channel for
respectful performance by ensuring their well-being through updates on refinery operations. The virtual afternoon chats
open and honest communication, frequent engagement, allowed all employees working from home to interact with
recognition of contributions, talent development and inclusive the Leadership Team remotely.
succession planning.