KUALA LUMPUR: Regional major oil-refining company, Hengyuan Refining Company Bhd has allocated RM852 million or US$205.3 million in capital expenditure (capex) for the financial year ending Dec 31, 2019 (FY19).
Chairman Wang YouDe said the company is fully focused in equipping the refinery for the long-term through intensive capital investment programme without compromising its sturdy financial position.
“It is worth noting that despite having spent RM610 million or US$150 million in capex last year, we have successfully maintained our strong balance sheet and improved our gearing level to 0.57 times compared with 0.67 times a year ago,” he said in a statement in conjunction with the company’s 60th annual general meeting today.
Wang said with FY19 being a year of construction and consolidation, the company will continue its efforts on investing for the refinery’s long-term future by undertaking major infrastructure projects that enhance the refinery’s sustainability and reliability.
The capex for FY19 will be spent primarily on four ongoing major infra-structure projects, – Euro 4M Mogas (Euro 4M), Clean Air Regulation (CAR), Hydrogen Generation (H2GEN) and Euro 5 Gasoil (Euro5G).
Wang said the Euro 4M project is in the construction phase and is targeted for completion by January 2020, which is the date legislated by the government for the new Euro 4M specification.
The CAR project is also currently under construction and is on track for completion in the third quarter of 2019.
Wang said the company has started the design and construction phase for the H2GEN project, with the first production expected by September 2020.
For the Euro 5 Gasoil project, it has extensively reduced the scope with considerable capital savings, which will allow Hengyuan to manage the project in-house.
“We have also completed all necessary tie-ins for the commissioning and start-up of the E4M, E5G and H2Gen projects, so there will be no significant plant downtime required before commissioning,” Wang said.
To date, he said, the company has approved capital investments of more than US$415 million since 2016 on top of its annual asset integrity capital spend.
“Our proactive hedging strategy, coupled with our ongoing focus on operational excellence ensures the refinery will be fully capable of operating efficiently and will be commercially competitive, once our intensive capital investment programme has been completed,” he said on the company’s prospects.
from Business http://bit.ly/2I4bH4Y
via Latest News in UK
No comments:
Post a Comment