Page 129 - HRC_Annual_Report_2023

Financial Reports &
Governance HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 127
Other Information

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

5 FAIR VALUE MEASUREMENTS (continued)
Fair value hierarchy (continued)

The table below summarises all financial instruments carried at fair value as at reporting date, based on a hierarchy that reflects
the significance of the inputs used in measuring its respective fair values. (continued)
Level 1 Level 2 Level 3 Total
RM’000 RM’000 RM’000 RM’000
Financial assets/(liabilities)

Derivative financial assets:
- Refining margin swap contracts - 116,530 - 116,530
Derivative financial liabilities:
- Refining margin swap contracts - (839,801) - (839,801)
- Commodity swap contracts - (40,158) - (40,158)
- Forward foreign currency contracts - (12,659) - (12,659)
At 31 December 2022 - (776,088) - (776,088)

During the current and previous financial year, there were no transfers between Level 1 and Level 2 fair value measurements
and no transfers into and out of Level 3 fair value measurement. The fair values were obtained from the counterparties.

6 REVENUE

2023 2022
RM’000 RM’000
Sale of oil products:
- refined 15,396,345 21,137,676
- crude oil 2,895 4,617
15,399,240 21,142,293

The sale of oil products is recognised at point in time.

7 OTHER INCOME

2023 2022
RM’000 RM’000
Interest income 15,456 20,471
Liquidated damages - 19,590
Insurance claims 9,847 950
Gain on modification of lease contract 15 -

25,318 41,011