Oiltek International Secures RM37.2 Million in New Contracts, Strengthening Global Presence and Order Book

Key Highlights

• Oiltek International Limited has clinched new contracts worth approximately RM37.2 million across multiple regions, including the Philippines, Africa, Pakistan, and Malaysia.
• The Group’s order book reaches approximately RM350.0 million, to be fulfilled over the next 18 to 24 months.
• The new contracts are expected to positively impact financial performance for the financial year ending 31 December 2026 (FY2026).
• Oiltek’s expanding international footprint demonstrates the strength of its geographically diversified business and its ability to mitigate market risks.

In-Depth Details for Investors

Oiltek International Limited (SGX Mainboard: Oiltek), a leading integrated process technology and renewable energy solutions provider, has announced the securing of new contracts worth approximately RM37.2 million. The contracts span diverse global markets, specifically the Philippines, Africa, Pakistan, and Malaysia, underscoring the Group’s resilient and adaptive business approach.

Breakdown of New Contracts

• Philippines: Design, fabrication, delivery, testing, and commissioning of a new 200 metric tonnes per day (MTD) biodiesel plant.
• Africa: Design and commissioning of a new 100 MTD physical refinery plant.
• Pakistan: Design and commissioning of a new 100 MTD neutralization plant.
• Malaysia: Provision of a new glycidyl esters (GE) mitigation system with ice condensing vacuum system for an existing 700 MTD physical refinery plant.

These projects further diversify Oiltek’s portfolio and reinforce its presence in multiple geographies, which is a significant mitigating factor against market concentration risks. The company’s robust order book, now standing at approximately RM350.0 million, provides visibility of future revenue streams, with delivery expected within the next 18 to 24 months, barring unforeseen circumstances.

Strategic and Financial Implications

Executive Director and CEO, Mr. Henry Yong Khai Weng, emphasized the Group’s resilience, strong supply chain execution, and disciplined cost management. He reaffirmed confidence in Oiltek’s ability to deliver sustainable growth and create long-term value for shareholders, supported by long-term customer partnerships.

Importantly, these contract wins are expected to have a positive impact on the Group’s financial performance for FY2026. For investors, this signals potential earnings growth and could be a catalyst for share price appreciation.

Corporate and Shareholder Information

• There are no interests held by Directors or controlling shareholders (beyond their shareholdings in the Company) in these new contracts, ensuring transparency and alignment with shareholder interests.
• The Group operates three main business segments: Edible & Non-Edible Oil Refinery, Renewable Energy, and Product Sales & Trading. These segments provide engineering, procurement, construction and commissioning (EPCC) services, environmental solutions, and recurring income from component sales and specialty chemicals.
• Oiltek has an established track record, having designed, built, and commercialised plants in more than 37 countries across 5 continents over 45 years.
• The company’s recent transfer from the Catalist to the Mainboard of SGX-ST (completed on 6 June 2025) marks a new chapter, potentially increasing visibility and liquidity for its shares.

Conclusion: Potential Price Sensitivity

The announcement of RM37.2 million in new contract wins, coupled with a substantial order book and international market diversification, is highly relevant for shareholders and investors. The anticipated positive impact on FY2026 results, strong operational execution, and clear corporate governance are all factors that could drive the share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisers before making investment decisions. The information is based on public news releases and may be subject to change without notice.

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