Oiltek International Secures RM74.3 Million in New Contracts, Lifts Order Book to RM398.2 Million: What Retail Investors Need to Know

Key Highlights

• Oiltek International Limited has landed new contracts worth approximately RM74.3 million from Malaysia, Indonesia, and Pakistan.
• Cumulative new contracts for FY2025 now total about RM136.2 million, reflecting robust demand and solid project pipeline.
• Order book surges to RM398.2 million, to be fulfilled over the next 18-24 months barring unforeseen circumstances.
• Projects span multiple segments: refinery plants, biogas, texturization, shortening plants, and major infrastructure for palm oil refinery complexes.
• Management expects these contracts to have a positive impact on FY2025 financial performance.
• No directors or controlling shareholders have any direct or indirect interests in these contracts beyond their current shareholdings.

Contract Breakdown: Details Retail Investors Need

Oiltek International Limited, a Singapore Mainboard-listed company specializing in integrated process technology and renewable energy solutions, has made a significant stride by securing a bundle of new contracts totaling RM74.3 million. These contracts come from three major markets: Malaysia, Indonesia, and Pakistan. This development brings Oiltek’s total new contracts for FY2025 to RM136.2 million, underscoring the group’s resilience and ongoing expansion in the face of a volatile macroeconomic environment.

Below are the specifics of these new contracts:

• Pakistan: Design, fabrication, delivery, testing, and commissioning of a new 200 metric tonnes per day (MTD) physical refinery plant.
• Malaysia: Design, fabrication, delivery, installation, testing, and commissioning of a new anaerobic digester tank for an existing Palm Oil Mill Effluent (POME)-Biogas Capture Plant.
• Indonesia:
  • Design, fabrication, delivery, installation, testing, and commissioning of a new packing line in a texturization plant.
  • Design, fabrication, delivery, testing, and commissioning of a new 10 tonnes per hour (TPH) shortening plant.
• Malaysia: Building and infrastructure works, plus process plant installation for a new palm oils & fats refinery complex.

These contracts cover a diverse range of Oiltek’s business segments, including edible and non-edible oil refining, renewable energy, and specialty product processing. The order book—now at RM398.2 million—is expected to be fulfilled within the next 18 to 24 months, which provides strong near-term revenue visibility and may enhance market confidence.

What Makes This News Price Sensitive?

• Significant Order Book Growth: The surge in contracts and order book size signals robust demand for Oiltek’s solutions and services, potentially driving earnings growth and supporting share price appreciation.
• Earnings Visibility: Management has explicitly stated that the new wins are expected to have a positive impact on FY2025 financial performance, which can be a catalyst for investor sentiment and stock performance.
• Diversified Revenue Streams: The contracts demonstrate Oiltek’s ability to secure projects across different geographies and business segments, reducing risk and enhancing earnings stability.
• Recent Mainboard Upgrade: Oiltek’s transfer from the Catalist to the Mainboard of SGX on 6 June 2025 may boost its profile, attract institutional investors, and improve liquidity.

Company Background and Strategic Position

Founded in 1980, Oiltek International has built a reputation as a reliable provider of refinery processes and engineering solutions across the vegetable oil value chain globally. The company operates three main business units:

1. Edible & Non-Edible Oil Refinery: Engineering, procurement, design, construction, and commissioning of refining plants and downstream specialty product facilities, including upgrades and retrofits.
2. Renewable Energy: EPCC of multi-feedstock biodiesel, enzymatic biodiesel, winter fuel, HVO feedstock, and POME biogas methane recovery plants, including environmental solutions and integration into steam and power generation.
3. Product Sales & Trading: Recurring income from engineering component sales, distributorships, and specialty chemical product trading.

With more than 44 years of operational history and projects in more than 37 countries, Oiltek has demonstrated strong execution capabilities and global reach. The recent slew of contract wins reaffirms its competitive positioning and ability to deliver integrated solutions across markets.

Management Commentary

Executive Director and CEO Mr. Henry Yong Khai Weng highlighted that these new contracts “reinforce our position as a trusted global partner in integrated process technology and renewable energy solutions for the vegetable oil industry.” He underscored the company’s focus on executing its long-term strategy to drive sustainable growth despite macroeconomic volatility.

What Should Shareholders Watch?

• Execution of Order Book: Timely delivery of these projects is crucial for revenue recognition and profit margins. Any delays or cost overruns could impact earnings.
• Further Contract Wins: Continued success in securing new projects could support further upside in the share price.
• Financial Updates: Investors should look out for earnings releases and order book updates for signs of growth acceleration or potential risks.
• No Related Party Transactions: There are no conflicts of interest, as none of the directors or controlling shareholders have personal stakes in these contracts beyond their shareholdings.

Conclusion: Why This News Matters

For retail investors, Oiltek’s latest contract haul and ballooning order book provide tangible evidence of the group’s strong market positioning and earnings outlook. The anticipated positive impact on FY2025 results, combined with Oiltek’s recent move to the SGX Mainboard, make this a potentially significant development for the stock in the near term. Investors seeking exposure to the renewable energy and process technology sector may find Oiltek’s growth trajectory and diversified business model compelling.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence or consult a financial advisor before making investment decisions.

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