Oiltek International Limited‘s net profit after income tax for 1H2024 jumped 50.0% to RM10.3 million on the back of revenue growth of 30.9% to RM100.5 million.
Revenue increased by 30.9% to RM100.5 million in 1H2024 due to an increase in the Group’s revenue for its Edible & Non-Edible Oil Refinery and Product Sales and Trading segments, which was partially offset by a decrease in revenue from its Renewable Energy segment.
Revenue from the Edible & Non-Edible Oil Refinery segment increased by 54.1% to RM87.7 million mainly due to an increase in revenue contribution from projects secured in the prior year from Malaysia, Indonesia, Africa and America. Revenue from the Product Sales and Trading segment increased by 11.8% to RM10.0 million in 1H2024, mainly due to an increase in demand from customers in Malaysia for the supply of parts and engineering components. Revenue from the Renewable Energy segment decreased by 74.6% to RM2.8 million mainly due to a decrease in revenue contribution from a project in Indonesia that was substantially performed in 1H2023.
Overall, the Group’s profit after income tax increased by 50.0% to RM10.3 million in 1H2024 which translates into a healthy earnings per share of 7.2 sen. As at 30 June 2024, the Group’s financial position remains robust and resilient, with zero debt, a net asset position of RM70.3 million, and healthy cash and bank balances of RM104.0 million, representing 148.0% of the Group’s net assets.
The Company is pleased to declare an Interim Dividend of 0.9 Singapore cent per share for 1H2024 to reward shareholders for their unwavering support.
Oiltek’s business outlook remains unchanged from FY2023, with businesses to be driven primarily by the corresponding growth in the industries that it serves, with the overall outlook expected to remain positive. The Group’s current order book remains strong at RM405.1 million, with new orders
of RM132.8 million secured to date in the current financial year.
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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.