Oiltek International Limited has recently secured new contracts in Indonesia and Africa worth RM81.6 million.
These new contracts involve i) the design, fabrication, delivery, testing & commissioning of a new crude palm oil (CPO) washing plant and four new refinery plants, all part of a proposed development of a new integrated refinery complex in Indonesia and which showcases the Group’s ability to plan and execute large scale projects; ii) a new 500 metric tonnes per day (MTD) physical refinery plant; and iii) a 500MTD dry fractionation plant in Africa.
The value of contracts won within the first 60 days since 1 January 2023 by Oiltek now amounts to RM101.0 million in total.
With the new contracts, Oiltek’s current order book has hit a new historical high of RM303.8 million. The current order book is expected to be fulfilled over the next 18 to 24 months, barring any unforeseen circumstances.
Mr Henry Yong Khai Weng, Executive Director and CEO of Oiltek, said, “We continue our strong growth momentum with contract wins in Indonesia and Africa. The very sizeable Indonesia contract aptly demonstrates our customer’s confidence in Oiltek’s strong engineering capabilities and our ability to execute large scale projects. In addition to our strong project management skills, we will continue to constantly innovate and develop new process engineering solutions for our clients to meet their evolving needs, while constantly pushing the envelope in terms of greater output and efficiency.”
The new contracts are expected to have a positive impact on the financial performance of Oiltek for FY2023.
Oiltek’s share price as of 1 March 2023 after market close was S$0.220.
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About Oiltek International Limited
Oiltek International Limited, an established integrated process technology and renewable energy solutions provider, specialises in the provision of reliable, innovative, diversified, and comprehensive range of refinery processes and engineering solutions for use across all different sectors of the vegetable oils industry value chain globally. The history of the Group can be traced back to its principal operating subsidiary, Oiltek Sdn. Bhd., which was incorporated in Malaysia on 1 December 1980. With over 42 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 33 countries across 5 continents.
Oiltek operates three key businesses – Edible & Non-Edible Oil Refinery, Renewable Energy, and Product Sales and Trading.
For its Edible & Non-Edible Oil Refinery segment, the Group provides engineering, procurement, designing, construction and commissioning (“EPCC”) services for edible and non-edible oil refining plants, downstream specialty products and processing plants; upgrading and retrofitting of existing facilities; and turnkey outside-battery-limits (“OSBL”) infrastructure engineering.
For the Group’s Renewable Energy segment, Oiltek provides services for renewable energy industries including EPCC of multi-feedstock biodiesel, enzymatic biodiesel, winter fuel, and palm oil mill effluent (“POME”) biogas methane recovery plants; upgrading and retrofitting of existing facilities; and turnkey OSBL infrastructure engineering which includes the environmental solutions and integration into steam and power generation.
Oiltek’s Product Sales and Trading segment generates recurring income for the Group, and its services include engineering component sales, agency and distributorship, and specialty chemical product trading.
