Oiltek International has secured new contacts worth RM9.6 million ($2.8 million) from Malaysia and South Korea, bringing the total number of new contracts signed in FY2023 to RM322.1 million.
The total value of contracts signed for FY2023 represents a 64.3% y-o-y increase from the total value of contracts signed in FY2022. It also brings the group’s current order book to around RM381.5 million. The order book is expected to be fulfilled over the next 18 to 24 months.
The new contracts involve the supply, installation and piping works for various processing plants in Malaysia; the design, fabrication and delivery of one new 300 tonnes per day (TPD) bleaching equipment in South Korea; and the upgrading and retrofitting of an existing texturizing plant in Malaysia. They are not expected to have a material impact on the group’s financial performance in FY2023 ended Dec 31, 2023, but are expected to contribute positively to its financial performance for FY2024.
“These latest contracts close off an exceptional year for us, with a substantial increase in the value of total contract secured as compared to last year. Our ability to be awarded new contracts highlight the market attractiveness of our reliable, innovative, diversified and comprehensive range of process and engineering solutions,” says Henry Yong Khai Weng, executive director and CEO of Oiltek.
“We are constantly innovating and improving our process and engineering solutions to meet the needs of our customers in various sectors of the vegetable oil value chain around the world. As we maintain the momentum in contract acquisition, our growing project pipeline will help to boost our growth and enhance our returns to shareholders,” he adds.
Shares in Oiltek closed at 22 cents on Dec 29, 2023.
