Revenue in its edible and non-edible oil refinery segment increased by 16.5% to RM157.4 million, due to the increase in revenue contribution from new projects secured in the prior year from Indonesia.
Similarly, revenue from its renewable energy segment increased by 83.1% to RM25.1 million, from an increase in revenue contribution from an ongoing project in Indonesia which achieved a higher percentage of completion in FY2023 compared to the year before.
Lastly, revenue from Oiltek’s product sales and trading segment increased by 25.0% to RM18.6 million, thanks to an increase in demand from customers in Malaysia and Africa for the supply of parts and engineering components.
As at last Dec 31, the listed renewable energy solutions company has zero debt, a net asset position of RM67.7 million and a cash and balance of RM132.5 million, representing 195.5% of its net assets.
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In FY2023, Oiltek won new orders worth RM322.1 million, bringing its total orderbook to RM361 million, to be delivered over the next 18 to 24 months.
With its pleasing results, the company’s board of directors has recommended a final dividend on 1.6 Singapore cents per share for FY2023, a 33.3% y-o-y growth compared to last year’s 1.2 cents.
This translates into a dividend yield of 7.3% based on Oiltek’s closing share price of 22 Singapore cents on the last market day in FY2023.
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With global consumption of oil increasing in line with population growth, the company is upbeat about the outlook of its edible and non-edible oil refinery segment.
Tapping its engineering capabilities and track record, the company is aiming for more of related projects.
“Oiltek once again enjoyed stellar growth in FY2023, even against the backdrop of a challenging global macroeconomic climate,” says CEO Henry Yong Khai Weng.
“Our solid financial performance and record of new orders secured in FY2023 demonstrate our resilient business fundamentals and strong operational capabilities,” he adds.
As at 4.10 pm, shares in Oiltek Internationalare trading 0.5 cents higher or 2.17% up at 24 cents on Feb 7.
