The improved performance was driven by increased average selling prices across all main products amid ongoing geopolitical tensions in the Middle East, supported by resilient and stable plant operations and disciplined financial risk management, which contributed to higher revenue growth.

Madam Yeo Bee Hwan, Chief Financial Officer of Hengyuan Refining Company Berhad, said:

"We are delighted to announce another strong quarterly performance in Q1 FY26, setting up Hengyuan for a bright year ahead despite significant volatility in global oil prices.

“Our disciplined operational execution and stable plant performance, along with proactive risk and financial management -- strategic efforts undertaken since 2024 -- have enabled us to optimise our product mix and capture the benefits of higher product margins for products such as gasoil and jet fuel. We believe these structural improvements will continue translating into tangible momentum moving forward. 

“As a result, we are strongly positioned to navigate today’s increasingly volatile external operating environment, where supply and demand dynamics continue to be influenced by macroeconomic developments, including geopolitical tensions.

“Looking ahead, Hengyuan remains committed to operational efficiency, product quality, and disciplined financial risk management. We continue to target a return to profitability by 2026 and delivering improved returns for all our shareholders.”