US REFINERIES BRACE FOR HURRICANE SEASON STARTING JUNE 2022. OIL CRACK MARGIN CONTINUE TO STAY ELEVATED AT THE TOP SIDE WHICH WILL BENEFIT HENGYUAN

  US REFINERIES BRACE FOR HURRICANE SEASON STARTING JUNE 2022. OIL CRACK MARGIN CONTINUE TO STAY ELEVATED AT THE TOP SIDE WHICH WILL BENEFIT HENGYUAN

For latest information, can join us at
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88


As you know that I had been investing in Hengyuan Refinery for quite some time. I will continue to stay invested in Hengyuan as a hedge towards commodity inflationary prices, especially in the oil and gas industry.

Prior to the current development that is happening in the global stage, here are the reason for me to stay invested in Hengyuan

1. The 2 years of Covid19 had resulted in oil refinery closure. a total of 5 oil refineries in the US shut down permanently during 2021.

2. Reopening of global economy and air travel boost demand for refined oil products such as jet fuel.

3. Russia Ukraine on going war had resulted in Russian oil products getting sanctioned by the West, hence elevated the oil price further.

4. Moving into 2H 2022, there are more violent weather changes in the gulf of US, where weather reports are looking between 6 to 10 hurricanes which will start from in June, peaking in September and ending on November 2022.


U.S. Oil Refiners Brace For Hurricane Season | OilPrice.com


As such event are lining up which will continue to push the oil refineries crack margin higher, or maintaining in a high range, oil refinery operator over the world that are not affected by oil sanctions or turbulent weather will be looking into mega earning season.

Hengyuan refinery will definitely fit into the context.




The price of Hengyuan had dropped from a peak of RM 7.70 to the current price of RM 6.30 is probably due to expiry of call warrants HENGYUAN C22

The exercise price of HENGYUAN C22 is RM 4.75.
As the price of HENGYUAN is above RM 4.75 now, the call warrant holder will be entitled for cash settlement after the maturity date of 30th May 2022.

Hengyuan is expected to post it's largest ever revenue and net profit for the 1st time, which will be 31st May 2022. With the crack margin sustaining at the higher range, HENGYUAN will be the darling stock of 2022.


For latest information, can join us at
Blog https://targetinvest88.blogspot.com
Telegram https://t.me/targetinvest88

https://targetinvest88.blogspot.com/2022/05/us-refineries-brace-for-hurricane.html