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Oiltek International wins new contracts worth RM29.9 mil bringing order book to new high of RM210.7 mil

Felicia Tan
Felicia Tan11/3/2022 03:57 PM GMT+08  • 2 min read
Oiltek International wins new contracts worth RM29.9 mil bringing order book to new high of RM210.7 mil
One of Oiltek's 100 MTD physical refining plants. Photo: Oiltek International
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Oiltek Sdn Bhd, the wholly-owned subsidiary of Catalist-listed Oiltek International, has secured new contracts in Indonesia and Malaysia worth a total of RM29.9 million ($8.9 million).

The new contracts involve the design, fabrication, supply, and commissioning of a 1,500 metric tonnes per day (MTD) physical refinery plant as well as a new 1,000MTD dry fractionation plant in Indonesia; and a dry fractionation plant expansion with additional three standard crystallizer loops in Malaysia.

The latest contract wins bring the cumulative value of new contracts secured in the FY2022 ending Dec 31 to RM152.6 million.

With the new contracts, the group’s order book has hit a new high of RM210.7 million. The order book is expected to be fulfilled over the next 18 to 24 months, barring any unforeseen circumstances.

“I am glad to see our order book hit this latest all-time high. We are riding on the strong growth of the global oil palm industry and will continue to work hard to bring our organization to new heights,” says Henry Yong, executive director and CEO of Oiltek.

“Despite the global economy being negatively impacted by rising geo-political tensions, inflationary pressures, supply chain disruptions and the lingering Covid-19 pandemic, we have managed to continue to maintain our growth momentum and go beyond by acquiring more projects around the world in both the Edible & Non-Edible Oil Refinery and Renewable Energy segments,” he adds.

See also: Civmec secures over A$330 mil contract for Rio Tinto Western Range Project

The new contracts are expected to contribute positively to the financial performance of the group’s FY2023 ending Dec 31, 2023.

As at 3.57pm, shares in Oiltek are trading 1.8 cents lower or 8.57% down at 19.2 cents.

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