Oiltek International, through its wholly-owned subsidiary Oiltek Sdn. Bhd., has been awarded new contracts in Indonesia and Malaysia. The contracts are worth a total of RM40.1 million ($11.6 million).
This brings the total value of new contracts awarded to the company to around RM260.0 million to date for the FY2023 ending Dec 31. The amount is a 32.6% increase from the RM196.1 million worth of contracts in the FY2022 ended Dec 31, 2022.
The new contracts include the design, fabrication, delivery, testing and commissioning of one new 10TPH shortening plant and one new 7.5TPH cocoa butter substitute plant in Indonesia. It also includes the design, fabrication, delivery, testing and commissioning of one new 10TPH shortening plant in Indonesia; and one new 200mtd dry fractionation plant based on refined, bleached and deodorised (RBD) palm olein at iodine value 65 (IV65) in Malaysia. TPH stands for tonnes per hour while mtd stands for metric tonnes per day.
These latest contracts bring the group’s current order book to approximately RM357.2 million, and the order book is expected to be fulfilled over the next 18 to 24 months, barring any unforeseen circumstances.
They are not expected to materially impact the group’s financial performance in FY2023 but they’re expected to contribute positively to the group’s financial performance in FY2024.
“The global edible oils market is expected to grow significantly from a projected value of US$212.6 billion ($289.73 billion) in 2022 at a compound annual growth rate (CAGR) of 4.8% to hit US$268.9 billion by 2027, which augurs well for the macro- outlook of our industry. Notwithstanding the current uncertain macroeconomic environment, our customers continue to expand their production to cater to increased demand, and we continue to offer them our reliable, efficient, and cost-effective process engineering solutions that incorporate the latest process engineering know-how and technologies that are tailored to their requirements. With these contract wins, we aim to maintain our growth trajectory for FY2023 and focus on the execution of our order book,” says Henry Yong Khai Weng, executive director and CEO of Oiltek.
See also: Kingsmen renews F1 contracts for $53.2 million
Shares in Oiltek closed at 21.5 cents on Oct 11.
