Page 6 - HRC_Annual_Report_2023

4 About HRC Value Creation Management Discussion Leadership
& Analysis

CHAIRMAN’S STATEMENT

Dear Shareholders,

Within a year challenged by volatility
in oil prices, continued supply chain
disruptions and an evolving energy
landscape, Hengyuan Refining Company
Berhad (HRC or the Company) focused on
sustainable growth through turnaround
and enhancements in transformation.

KEY FY2023 HIGHLIGHTS This successful commissioning and smooth SUSTAINING SAFE WORKPLACE
operation of E4M has benefited HRC by AND MINDSETS
The 2023 major Turnaround activity (TA 2023) increasing site margins.
was the year’s key highlight, whereby the Safety is paramount in our operations.
refinery was in a temporary suspension mode Together with these operational In the dynamic and intricate environment
to enable activities such as maintenance, achievements, in 2023 HRC received two of a refinery, prioritising safety isn’t just a
inspections, repairs, and upgrades to prestigious awards that recognises the commitment; it’s a responsibility. Our refinery
production assets and equipment to be effectiveness of our sustainable initiatives. has steadfastly adhered to the highest
carried out, in ensuring reliable, sustainable The first being the Prime Minister’s Hibiscus safety standards, achieving zero lost time
and efficient operation of our assets and Award 2023 for Excellent Achievement in injury (LTI) even amidst a busy turnaround
equipment. With the joint efforts of the Environmental Performance and the other year. Our unwavering dedication to creating
management and employees, this proactive was a gold award from The Edge Malaysia a secure working environment pays off in
approach had been successfully carried out ESG Awards for Most Consistent Performer achieving record high reliability performance.
within the stipulated timelines and costs. Over 5 Years. These achievements not only reflect our
It helps manage safety risks, maintain compliance with regulatory frameworks
regulatory compliance, and optimises the ACTIVATING WORKFORCE but also highlight our commitment to the
refinery’s overall performance. MANAGEMENT ENHANCEMENTS well-being of our employees and the
Alongside this, in FY2023, HRC achieved We regard our employees as key drivers communities in which we operate.
a reliability milestone, with a record low of our success. Thus we launched the We remain vigilant in our pursuit of
Unplanned Downtime (UPDT) of 0.68%, “People Programme” in 2023 to build excellence in safety measures, ensuring that
this puts us at par with other newer world a sustainable talent pool of skilled and our refinery continues to be a model of
class refineries under quartile-1 of the committed employees who will enhance responsible and sustainable operations.
Solomon chart. The fact that this was HRC’s ability to swiftly respond to market IMPROVING COST OPTIMISATION
achieved in a turnaround year, is a testament changes, technological advancements,
to the calibre of our workforce. I applaud and shifting customer preferences in today’s FOR BETTER MARGINS
each and every HRC employee for this dynamic business environment. Through Our financial performance remains
achievement. this programme, we aspire to nurture a vulnerable to crude price, refined product
responsive workforce that would empower
It is worth to highlight that the E4M price, and foreign exchange (forex)
project experienced a smooth and safe us to navigate uncertainties effectively, fluctuations caused by geopolitical
and to capitalise on emerging opportunities.
first year of operation with no major forces and global economic changes.
product quality or reliability issues, More on this programme is detailed on HRC was therefore vigilant in managing
signifying its sustainable operational status. page 33. cash flows to ensure ongoing liquidity
and identifying cost-saving opportunities.