Oiltek International’s Impressive Growth and Promising Outlook
Oiltek International’s Impressive Growth and Promising Outlook
Oiltek International Limited has reported a substantial increase in its financial performance for the three months ended 30 September 2024 (3Q2024) and nine months ended 30 September 2024 (9M2024) compared to the same periods in 2023. The company’s unaudited financial results reveal notable growth in revenue and profit, driven primarily by the Edible & Non-Edible Oil Refinery segment and the Product Sales and Trading segment.
Key Financial Highlights
For 3Q2024, Oiltek’s revenue surged by 14.5% to RM67.60 million, while gross profit saw an impressive increase of 75.2% to RM19.91 million. This growth in gross profit elevated the gross profit margin by 10.2 percentage points, reaching 29.5%. The profit after income tax also climbed by 83.2% to RM8.98 million.
Over the nine-month period (9M2024), the company recorded a 23.8% rise in revenue, totaling RM168.05 million. The gross profit increased by 57.6% to RM39.42 million, improving the gross profit margin by 5.1 percentage points to 23.5%. Profit after income tax grew significantly by 63.9%, reaching RM19.26 million.
Market Outlook and Strategic Initiatives
The company expresses confidence in the long-term prospects of the Edible & Non-Edible Oil Refinery segment, supported by the growing global consumption of oils and fats. The global fats and oils market is projected to expand from USD256.99 billion in 2023 to USD402.94 billion by 2033, with a compounded annual growth rate of 4.6%.
Oiltek is strategically positioned to capitalize on this trend by leveraging its integrated technology and proven track record to secure larger projects and expand geographically. Additionally, the company’s Renewable Energy segment is set to benefit from increased biodiesel blending mandates in major palm oil producing countries like Indonesia and Malaysia.
Indonesia’s biodiesel production has risen, and the government plans to increase the blending mandate to 40% (B40) by 2025. Malaysia is also targeting a 30% blending mandate (B30) by 2030. These initiatives align with the aviation industry’s move towards sustainable aviation fuel (SAF) to achieve net-zero carbon emissions by 2050.
Oiltek’s capabilities in treating palm oil mill effluent and other vegetable oil-based materials position it well to provide feedstock for renewable diesel production, aligning with international sustainability standards.
Order Book and Future Outlook
As of the announcement date, Oiltek’s order book stands at approximately RM400.9 million, expected to be fulfilled over the next 18 to 24 months. Despite the uncertainties in the global economy, the company remains optimistic about its growth prospects, driven by the industries it serves.
This detailed financial performance and strategic positioning suggest a positive outlook for Oiltek International, potentially influencing shareholder value favorably.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should perform their own research and consult a financial advisor before making investment decisions.
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