Established integrated process technology and renewable energy solutions provider, Oiltek International Limited, announced that its net profit after income tax for FY2023 surged 50.9% to RM19.1 million on the back of a revenue growth of 22.8% to RM201.1 million.
Revenue increased by 22.8% from RM163.7 million for FY2022 to RM201.1 million for FY2023 following an increase of business activities across all business segments. Revenue from the Edible & Non-Edible Oil Refinery segment increased by 16.5% to RM157.4 million in FY2023, mainly due to increase in revenue contribution from new projects secured in the prior year from Indonesia. Revenue from the Renewable Energy segment increased by 83.1% to RM25.1 million, mainly due to an increase in revenue contribution from an ongoing project in Indonesia. Revenue from the Product Sales and Trading segment increased by 25.0% to RM18.6 million, mainly due to an increase in demand from customers in Malaysia and Africa for the supply of parts and engineering components.
Overall, profit after income tax increased by 50.9% to RM19.1 million which translates into a healthy earnings per share of 13.4 sen. The Group’s current order book remains high at RM361.0 million, with new orders secured of RM322.1 million in FY2023.
As at 31 December 2023, the Group’s financial position remains strong and resilient, with zero debt, a net
asset position of RM67.7 million and healthy cash and bank balances of RM132.5 million, representing
195.5% of the Group’s net assets.
The company is recommending a Final Dividend of 1.6 Singapore cents per share for FY2023, representing about 40.7% of the Group’s net profit after income tax, which translates into a
dividend yield of 7.3%.
The Group remains confident about the long-term outlook of the Edible & Non-Edible Oil Refinery
segment, with the global consumption of oils and fats growing in line with population growth, and also sees the increasing acceleration of global environmental sustainability benefitting its
Renewable Energy segment.
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The aviation industry’s decarbonisation commitment to achieve net zero emissions by 20504
will propel the aviation market towards sustainable aviation fuel. The Group’s processes are capable of treating and cleansing palm oil mill effluent (POME), a non-edible vegetable oil, as well as any other vegetable oil-based raw materials for use as feedstock in the production and manufacture of hydrogenated vegetable oil (HVO) which is used as aviation fuel.
