KUALA LUMPUR: Hengyuan Refining Company Bhd has flagged revenue impact from the shut down its Long Residue Catalytic Cracking Unit (LRCCU) for inspection and repair after leakage was found at its carbon monoxide boiler.
The LRCCU serves as a conversion process to convert the high-boiling point, high-molecular weight hydrocarbons fractions of crude oils into high value consumer petroleum products.
Following the unplanned shutdown of LRCCU, the oil-refining company said it is required to shut down the hydrogen manufacturing unit (HMU) and Euro4Mogas facility (E4M) for inspection as part of regulatory requirements while the refinery plant is operating as usual.
"At this juncture, the company is proactively taking necessary measures with the aim of the LRCCU returning its operation to optimum levels on a phased basis, in the coming weeks. In the meantime, the inspection activities, originally scheduled for E4M and HMU in the fourth quarter of the year, will be executed during the period of shutdown.These activities are intended to negate the requirement for the further planned outages in 2024 for E4M and HMU," Hengyuan said in a filing with Bursa Malaysia Securities today.
As a result, the company said refinery production will be affected during the shutdown period and hence, the revenue it earned during the shutdown period will be reduced.
Consequently, Hengyuan said it will put in place mitigating measures to ensure there will be no major disruption of production supply to its customers during the shutdown period.
"Given the current uncertainties, the financial impact of this incident cannot be reliably estimated at this point but is expected to be material for the company. "Further updates will be made from time to time when there are material developments," it added.
Hengyuan's shares closed at RM2.83 today, up 0.4 per cent or 1 sen with its market capitalisation stands at RM849 million.