Singapore, 19 November 2024 — Oiltek International Limited, a leading process technology and renewable energy solutions provider, today released its unaudited business update for the three and nine months ended 30 September 2024, showcasing robust financial performance and strong momentum across its core segments.
Financial Highlights
For the third quarter of 2024, Oiltek posted revenue of RM67.6 million, marking a 14.5% increase compared to the same period last year. Gross profit surged 75.2% year-on-year to RM19.9 million, with gross profit margin expanding significantly from 19.3% to 29.5%—driven largely by improved performance in the Edible & Non-Edible Oil Refinery segment. Profit after income tax rose by 83.2% to RM9.0 million.
Over the nine-month period, revenue grew by 23.8% to RM168.1 million, while profit after income tax increased by 63.9% to RM19.3 million. The Group’s strong results were underpinned by higher revenues from the Edible & Non-Edible Oil Refinery and Product Sales and Trading segments, partially offset by softer performance in the Renewable Energy segment.
Order Book and Market Outlook
Oiltek’s order book, as of the announcement date, stands at approximately RM400.9 million, with these contracts expected to be fulfilled over the next 18 to 24 months. This robust pipeline reinforces confidence in the Group’s near-term growth prospects.
The global fats and oils market, valued at USD256.99 billion in 2023, is projected to surpass USD402.94 billion by 2033, driven by population growth and rising demand for vegetable oils. Oiltek is well-positioned to capitalize on this trend, offering solutions for all major vegetable oils, including palm, soybean, and rapeseed oil.
Renewable Energy and Sustainability Focus
The Group continues to benefit from accelerating global commitments to environmental sustainability. Indonesia, the world’s largest palm oil producer, has increased its biodiesel blending mandate to 35% (B35) and is targeting 40% (B40) by 2025. Malaysia is similarly advancing its biodiesel program, with plans to implement a 30% blending mandate (B30) by 2030.
With the aviation sector targeting net zero emissions by 2050, the demand for sustainable aviation fuel (SAF) is expected to rise sharply. Oiltek’s processes are capable of treating palm oil mill effluent and other vegetable oil-based raw materials in compliance with international standards, positioning the Group as a key player in the emerging SAF market.
Mr. Yong Khai Weng, Executive Director and Chief Executive Officer of Oiltek International Limited, stated: “Our strong financial performance and growing order book reflect our ability to deliver value in a dynamic market. We are confident in our long-term outlook, supported by global trends in food demand and sustainability. Oiltek will continue to innovate and expand, leveraging our integrated technology and proven track record to serve existing and new markets.”
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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 44 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 37 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.
