Oiltek International Limited has been awarded new contracts in Indonesia and Malaysia worth RM56.8 million for both its Edible & Non-Edible Oil Refinery and Renewable Energy segments in the second quarter of 2023.

Oiltek’s new contracts involve the design, fabrication, delivery, testing & commissioning of a new crude palm oil (CPO) pre-treatment plant and biodiesel plant, and a new shortening plant. In addition, another contract involves a turnkey project for the construction, fabrication, and installation of inside-battery-limits (ISBL) for a new physical refinery plant and a dry fractionation plant.

Adding to RM101.0 million of new contracts secured in first quarter of 2023 (1Q2023), the cumulative value of new contracts won in the whole of 2023 (FY2023) to date now amounts to approximately RM157.8 million, which represents 80.5% of the RM196.1 million in contracts won in the whole of 2022.

Mr Henry Yong Khai Weng, Executive Director and CEO of Oiltek, said, “We will continue to build on our growth momentum even amidst a challenging operating environment to surpass last year’s record of new orders. Indonesia and Malaysia being the two largest producers of palm oil in the world, continue to be key growth markets for Oiltek. As an advocate of renewable energy, we continue to expand our business in the sector as we see opportunities in the global trend towards environmental sustainability. With our new and innovative process designs, Oiltek will continue to provide support and solutions to help customers with their sustainability efforts.”

This latest achievement brings Oiltek’s order book to RM339.5 million, another new high for the company. Oiltek’s current order book is expected to be fulfilled over the next 18 to 24 months, barring any unforeseen circumstances. The new contracts are expected to have a positive impact on Oiltek’s financial performance for FY2023.

Oiltek’s share price as of 20 April 2023 before market open was S$0.235.

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.

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