Why the surge in price? PhillipCapital said, in a March 13 update, that Oiltek could be benefiting from a multi-year build-out cycle for sustainable aviation fuel (SAF) around the region. SAF plants in Indonesia and Malaysia have access to abundant feedstock, namely palm oil mill effluent. Higher jet fuel prices and energy security as a result of the Iran war are added impetus to accelerate the demand for SAF. Other opportunities ahead for Oiltek include palm oil refining plants in South America and biodiesel and bioethanol plants in Indonesia, PhillipCapital says, while the next evolution for Oiltek is to generate recurring income from an ownership stake in processing plants.
Oiltek International, a small-cap that listed on Catalist at 23 cents in March 2022, surged to an all time high of $1.18 on March 27. On March 25, Koh Brothers Group, which owns around 68% of Oiltek, announced it had received a requisition from shareholders to “procure Koh Brothers Eco Engineering (KBE), a 54.8%- owned subsidiary, to distribute in specie all of its 97,445,805 ordinary shares in Oiltek International to the shareholders of KBE, and for the Company, upon receipt of such shares, to similarly distribute the Oiltek shares to its own shareholders on a pro-rata basis.”
Koh Brothers said its Board is seeking legal advice on the validity of the Requisition Notice, and will update shareholders of the Company as and when there are material developments on this matter.
