Singapore, 12 February 2025 – Oiltek International Limited, a leading provider of integrated process technology and renewable energy solutions, has reported a stellar performance for the financial year ended 31 December 2024 (“FY2024”), with net profit soaring 55.0% year-on-year to RM29.6 million and revenue rising 14.5% to a record RM230.3 million.
Backed by strong momentum across its core segments and a healthy RM354.9 million order book, the Group’s FY2024 gross profit grew 40.4% to RM55.1 million. Earnings per share climbed to 20.7 sen from 13.4 sen in FY2023.
In appreciation of shareholders’ continued support, the Board has proposed a final dividend of 1.8 Singapore cents per share, bringing the total dividend for FY2024 to 2.7 Singapore cents per share, a 68.8% increase from the previous year. This represents approximately 44.4% of net profit for the year.
Segmental Performance
The Edible & Non-Edible Oil Refinery segment led the charge with a 23.2% revenue increase to RM193.9 million, driven by project wins in Malaysia. While revenue in the Renewable Energy segment dipped 29.7% to RM17.7 million following the substantial completion of a key Indonesian project in FY2023, the Product Sales and Trading segment posted stable growth of 0.9%, reaching RM18.8 million.
Despite a decrease in cash and bank balances to RM106.1 million, the Group remains in a solid financial position with zero debt and a 24.4% increase in net assets to RM84.3 million.
“Oiltek had another record year of growth in FY2024, buoyed by a strong order book and support from new and existing customers,” said Mr. Henry Yong Khai Weng, Executive Director and CEO. “This performance reflects our resilient business model, proprietary technology, and innovation capabilities. Looking ahead, we remain optimistic and committed to delivering sustainable value to shareholders.”
Future Outlook
The Group is upbeat about long-term prospects in the edible and non-edible oil industry, expected to grow at a CAGR of 4.6% through 2033. Oiltek is well-positioned to capitalise on global trends, including growing demand for vegetable oils and the transition towards sustainable aviation fuel (SAF) and biodiesel, especially in Southeast Asia.
Recent policy developments in Indonesia and Malaysia to increase biodiesel blending mandates, alongside growing SAF investments globally, provide compelling tailwinds for the Group’s Renewable Energy segment. As at end-FY2024, Oiltek had secured RM207.0 million in new orders, underpinning strong earnings visibility over the next 18–24 months.
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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.
