Page 7 - HRC_Annual_Report_2023

Financial Reports &
Governance Other Information HENGYUAN REFINING COMPANY BERHAD l ANNUAL REPORT 2023 5

Under HRC’s Business Improvement Plan mere compliance, embracing them as and continuous learning to adapt to new
(BIP) strategies, eight tactics related to integral components of our corporate technologies and methodologies.
increasing processing capabilities and governance and disclosure practices.
efficiencies were implemented that will Additionally, we have also invested in Braving the challenges brought on by climate
change and the global trend of cleaner and
result in about USD6.8 million savings in employee training and development renewable energy, we embrace cleaner
FY2024, depending on their utilisation.
programmes to build awareness and technologies and sustainable practices in
ADVANCING SUSTAINABILITY expertise related to environmental order to remain competitive and relevant
AND ESG stewardship, social responsibility, and ethical in the market, as it is not only a necessity
for environmental stewardship but also a
business practices. This contributes to
Within the domestic economic landscape, fostering a workforce that is sustainability strategic imperative for long-term business
the focus is gradually shifting to transitioning focused. resilience.
to a low-carbon economy. As such, In pursuit of these values, we have engaged By strategically aligning our business with
HRC is also planning ahead to stay nimble an external consultant to assist in the sustainable practices, we believe that the
and responsive to environmental regulatory development of a robust ESG framework, anticipated impact on earnings will be
changes that might require refineries to make ensuring our strategies are well-aligned positive in the longer term, contributing to
necessary investments in technology and with best practices. We understand economic growth and a more resilient future.
infrastructure in order to reduce emissions the importance of such a framework in
or to comply to stricter environment addressing the evolving landscape of At our end, we are proactively managing
protection standards. climate-related challenges and opportunities, risks associated with the transition,
A significant stride in our ESG journey was and are thus committed to providing including potential regulatory changes,
market disruptions, and technological
made with the roll out of HRC’s formal stakeholders with timely updates regarding advancements. By staying agile and
ESG framework in 2023. The framework our climate-related financial exposures responsive, we aim to mitigate risks and
outlines initiatives that support net zero and strategies. The ESG award we earned capitalise on emerging opportunities.
aspiration such as the Energy Masterplan from The Edge in 2023, acknowledges
that will help minimise our carbon footprint. HRC’s commitment to observing ESG ACKNOWLEDGEMENTS
Through the Energy Masterplan, we have principles and sustainability with consistent
implemented initiatives to reduce carbon performance over five years. In closing, let us embrace change with
emission, adopt eco-friendly technologies to gratitude for the past, and excitement
enhance resource efficiency, contributing to FY2023 DIVIDENDS for the future. On behalf of the Board,
our broader commitment to environmental Having assessed the cash flows prior to I would like to express our appreciation and
sustainability. declaration of dividend, in compliance gratitude to Puan Fauziah Hisham who
On the basis of stabilising our current oil with the Companies Act 2016, the Board resigned as our Director on 8 December
2023. With that, I welcome our new Director
refining business and maximising the value has deemed it prudent to not declare any Ms Li, XiaoXia to contribute fresh perspectives
of our existing resources in the coming dividends at this juncture, given the financial and insights to the Board in our journey
years, HRC is mindful of the growing performance and volatility of the market. ahead. I also extend my heartfelt thanks to
demand for greener solutions around the each member of our dedicated team.
world. We are continuously on the look-out MOVING INTO 2024
for future opportunities in petrochemicals The industry is influenced by factors such as The year’s successful turnaround would not
and renewable energy. In the meanwhile, fluctuating commodity prices, geopolitical have been possible without the collective
enhancing our existing businesses remains dynamics, rapid technological advancements, efforts of the leadership team and our valued
a key part of our strategy. As such, and increasing focus on climate change employees. Their dedication and hard work
in 2023 we have decided to proceed with and sustainability. The macroeconomic form the bedrock of our accomplishments.
the Flare Gas Recovery Unit (FGRU) project. outlook influenced by the US and China, We look forward to the shared triumphs
The environmental benefits of the FGRU the geopolitical tensions in the Middle and innovations that will undoubtedly
are primarily associated with the reduction East and the Eastern Europe, as well as emerge by advancing as ONE Hengyuan.
of greenhouse gas emissions and the reactions from the Organisation of the We also eagerly anticipate the new heights
additionally, helps to minimise the release of Petroleum Exporting Countries (OPEC) will we will reach under the leadership of
pollutants, conserve resources, and reduce impact the oil and gas market demands. Mr Luke Yin who has joined the team as
the need for flaring - all of which contributes Within this challenging environment, our new CEO. Finally, our appreciation
to the improvement of air quality.
we steadfastly adhere to our strategies, extends to our valued customers, trusted
commitment and directional path to ensure partners, shareholders and community
GOVERNANCE AND INTEGRITY a reliable and stable long-term supply of stakeholders, with the assurance that our
STEWARDSHIP refined products to Malaysia. priority towards delivering sustainable
Our commitment to integrity and To strengthen our operations in Malaysia, value, quality services and safe operations
transparency remains unwavering. We have we focus on honing our competitive edge is unwavering. I look forward to continue
diligently kept pace with the reporting through operational excellence, reduced serving you with passion and commitment.
standards mandated by Bursa Malaysia. operational costs and a wider customer
We strive to uphold the spirit of these base. The roll out of the ESG framework and
standards, to extend our efforts beyond implementation of the People Programme Wang, YouDe
are aimed at fostering a culture of innovation Chairman