SINGAPORE (Jan 23): Koh Brothers Eco Engineering plans to spin-off its 80%-held indirect subsidiary Oiltek Sdn Bhd, for its separate listing on either Catalist or Malaysia’s ACE Market, the company announced on Jan 23.

The separate listing will also include Oiltek Nova, a subsidiary of Oiltek. These companies are in the business of building edible oil refining plants, with contracts delivered across 32 countries, including Malaysia, its main operating market.

On Jan 23, Koh Brothers Eco Engineering reported full year earnings of $5.7 million, a slight improvement from $5.6 million made in the year earlier. For the same Dec 31 2019 period, the company recorded revenue of $290.6 million, down 11.6% from the preceding year.

On the same day, Koh Brothers Group, which is the largest shareholder of Koh Brothers Eco Engineering, reported earnings of $5.8 million for FY2019, a slight improvement from $5.7 million recorded in the preceding year.

Revenue in the same period dropped 12.4% y-o-y to $353.7 million from $403.6 million.

Koh Brothers Eco Engineering itself was spun off from Koh Brothers Group. The former provides engineering and construction services for water and wastewater treatment, hydro-engineering, bio-refinery and bio-energy projects.

The latter, besides construction, is in property development and has interests in hospitality as well.

Its latest project, Van Holland, a freehold luxury development, moved more than 20% of the units just one week after the public launch. 

“Having a broader business segmentation has enabled us to stay resilient amidst macro headwinds," says Francis Koh, Koh Brothers' managing director and group CEO.