KUALA LUMPUR: Hengyuan Refining Co Bhd returned to the black in the third quarter ended Sept 30, 2025 (3Q25), posting a net profit of RM21.04mil compared with a net loss of RM165.10mil in the same period last year, marking its strongest quarterly performance since FY22.

Hengyuan said the stronger results were driven by enhanced plant efficiency and improved production yields stemming from its focus on operational excellence.

It added that higher crack spreads, which have risen both year-on-year and year-to-date compared to 2024, also contributed to better gross margins.

Revenue, however, declined 12% to RM3.62bil in 3Q25 from RM4.12bil previously, mainly due to lower product prices, a trend compounded by the weakening of the US dollar against the ringgit.

In the nine months to Sept 30, Hengyuan posted a net loss of RM322.6mil on revenue of RM9.5bil.

Chief financial officer Yeo Bee Hwan said the company’s strongest quarterly result since FY22 reflected ongoing efforts to improve plant efficiency, enhance production yields and pursue new business opportunities.

“In 3Q25, Hengyuan benefited from higher year-on-year crack spreads. Concern over supply cuts is driving strong demand for middle distillates such as diesel and jet fuel, which has been positive for margins.

“While the global oil market remains volatile, Hengyuan will continue to focus on operational efficiency, product quality, and prudent financial management. We remain committed to our target of returning to profitability by 2026,” she said.