Singapore, 15 May 2025 – Oiltek International Limited, a leading provider of integrated process technology and renewable energy solutions, reported a robust set of 1Q2025 results, with net profit climbing 22.1% year-on-year to RM5.37 million, despite a slight dip in revenue.
Revenue for the quarter stood at RM46.74 million, down 5.1% from RM49.26 million in the same period last year, due to lower contributions from the Edible & Non-Edible Oil Refinery and Product Sales and Trading segments. However, the Group’s gross profit surged to RM11.91 million, up 52.4% from a year ago, driven by higher-margin projects. Gross profit margin expanded sharply to 25.5% from 15.9% in 1Q2024.
“Despite a marginal drop in topline, we’ve delivered a significant uplift in profitability and margins,” said Mr. Henry Yong Khai Weng, Executive Director and CEO of Oiltek. “This reflects the strength of our engineering expertise, project mix, and disciplined cost management.”
Financial Position Strengthens; Cash Surges 39%
As at 31 March 2025, Oiltek reported cash and bank balances of RM147.38 million, a 38.9% jump from RM106.14 million at year-end 2024. Net assets rose 6.5% to RM89.74 million over the same period, underscoring the Group’s financial resilience.
RM373.4 Million Order Book Underpins Revenue Visibility
The Group’s outstanding order book stood at approximately RM373.4 million as of mid-May 2025, based on unfulfilled orders from signed contracts, confirmed variation orders and letters of award. These are expected to be fulfilled over the next 18 to 24 months.
Outlook: Positioned for Growth in Sustainable Energy
Oiltek remains bullish on long-term demand in the vegetable oil and renewable energy markets. The global fats and oils market is projected to grow from USD241.1 billion in 2024 to USD336.3 billion by 2033, benefiting the Group’s core refinery solutions segment.
In the Renewable Energy space, Southeast Asia’s continued push toward biodiesel and sustainable aviation fuel (SAF) creates tailwinds. Indonesia recently raised its biodiesel blending mandate from B35 to B40, with B50 implementation planned for 2026. Malaysia also aims to expand its B20 programme by the end of the decade.
As a provider of pre-treatment and feedstock purification systems for hydrogenated vegetable oil (HVO) and SAF production, Oiltek is strategically positioned to capture this green transition.
“We see immense opportunities ahead in both traditional oil refining and sustainable fuels,” Mr. Yong added. “Our record order book, strong cash flow, and proven capabilities give us confidence as we continue to invest in innovation and international expansion.”
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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.
