Page 49 - HRC_Annual_Report_2023

Financial Reports &
Governance Other Information HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 47

MOVING FORWARD INTO 2024

The oil and gas sector is anticipated to confront multiple obstacles, such as fluctuating oil prices, heightened competition from
renewable energy alternatives, and more stringent emission regulations. While these challenges persist, oil and gas demand is
projected to stay robust in the short to medium term, especially in developing nations experiencing population and economic growth.

In the coming year, we aim to enhance HRC’s revenue and Implementing the Sustainability and ESG Framework
profitability through the following initiatives: to meet regulatory requirements - Adhering to this
established framework, HRC’s focus for 2024 is to meet the
• Continue to actively manage and maintain agreements for enhanced sustainability reporting requirements that have been
crude oil purchases and sales of oil products, including gasoline, outlined by Bursa Malaysia Securities Berhad, which deems the
gasoil, and jet fuel, with our current vendors and clients. following eleven (11) indicators as material:
• Increase inland sales by strengthening relationships with Health and
our current partners, welcoming additional new customers, Anti-Corruption Safety Water
and broadening our existing distribution networks. Community/ Labour Practices Waste
Society and Standards Management*
• Enlarge HRC’s regional presence, especially by diversifying
our crude supply sources to optimise profit margins. Diversity Supply Chain Emissions*
Management
• Optimise regional supply opportunities to customers where Energy Data Privacy and
it proves to be economically beneficial. The one-year term Management Security * By FYE 31 December
contract on sale of propylene to a major oil & gas company 2024
in Thailand that was signed in February 2024 exemplifies the As these disclosure items fall under the jurisdiction of
intention of how HRC aims to expand our supply in the region. various departments, implementation will be led by the
Sustainability Working Group, represented by employees from
Moving forward, HRC is dedicated to consistently provide value different departments. Additionally, we will continue to hold
to our shareholders and stakeholders through the following Sustainability Steering Committee meeting to ensure that
key initiatives: the initiatives that have been outlined in the framework are
Optimising organisational strength through the implemented accordingly.
HRC’s People Programme - The HRC People Programme Planning for Phase 2 of the Energy Masterplan -
is designed to optimise our workforce capabilities, foster a We are now working towards planning for Phase 2 of the
culture of innovation and adaptability, and ensure that our team Energy Masterplan. The Masterplan is an important component
is equipped to meet the challenges of tomorrow. that supports HRC to achieve Net Zero by 2050, and one
Through this programme, HRC is committed to create a of the key initiatives which we are working on in 2024 is the
workplace environment where every employee feels valued, implementation of the FGRU Unit, which is a significant step
empowered, and prepared to contribute to our shared success. to reducing HRC’s carbon footprint.
This ongoing initiative underscores our belief that our people Planning ahead for Euro 5M product specifications -
are our most valuable asset, and by investing in their growth The next phase for sustainable growth would be preparation
and development, we are building a future-ready organisation and planning for Euro 5M product specifications which is
poised for continued excellence. scheduled for compliance by 2025 to 2027. The groundwork
planning involves technology evaluation and selection of
front-end engineering design (FEED).
Executing the BIP to boost margins - With all major
projects launched and operational, HRC is poised to increase
our revenue by transforming lower-value products into
higher-value products. We are dedicated to implementing
specific BIP tactics to boost margins in 2024. These include
strategies such as diversifying crude types, expanding site
capacity, further unlocking gas oil production constraints,
and achieving fuel savings.

To ensure meticulous oversight of all initiatives undertaken
by various departments, we have established a Portfolio
Management Unit. This unit is tasked with closely monitoring
the progress and implementation of all committed initiatives,
ensuring alignment with our overarching business goals.