For FY2025 ended Dec 31, Oiltek International has reported profit after tax of RM31.98 ($10.29) million, representing a y-o-y increase of 7.9%. Adjusted for the 2-for-1 bonus share issue in 2025, earnings per share would be 7.45 sen, compared to 6.91 sen from the previous year.
Despite higher overall profit and better performance in the renewable energy segment, overall revenue decreased by RM18.86 million, or 8.2% y-o-y, to approximately RM211.4 million. This was attributed to weaker performance in the edible and non-edible oil refinery segment and product sales and trading segment.
On a segmental basis, revenue for the edible and non-edible oil refinery segment declined 30.7% y-o-y to RM134.4 million. With several Indonesia and African projects substantially completed in the previous year, FY2025 saw less revenue booked for this segment.
The product sales and trading booked revenue of approximately RM15.4 million, a y-o-y decrease of 18.3%. This was mainly due to a decrease in demand for the supply of parts and engineering components from customers in Malaysia.
Renewable energy was the rising star of the business, with strong revenue recorded from projects secured in the prior year from Malaysia. For FY2025, this segment’s revenue jumped by nearly 250% y-o-y to RM44.1 million.
According to Oiltek, excluding foreign exchange losses of approximately RM8.2 million in FY2025 compared to foreign exchange gains of approximately RM2.6 million in FY2024, the company’s net profit for FY2025 would have increased by 48.7% to RM40.2 million, up from RM27.0 million in FY2024.
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Oiltek’s balance sheet has net assets of around RM99.9 million with cash holdings decreasing 6% y-o-y to RM99.7 million. Based on the company's new share capital of 429 million shares, the company’s net asset value per share is 23.3 sen.
The company is proposing a final dividend of 0.7 cents per share, bringing total dividend per share for FY2025 to 1.2 cents. For comparison, adjusting for the bonus share issue, total dividend per share would be 3.6 cents, which represents a 33% increase from FY2024 dividend.
Henry Yong, Oiltek executive director and CEO says that the company delivered a “resilient” performance in FY2025 despite a “challenging” global environment. He adds, “This year also marked another milestone with our successful transfer to the Mainboard of SGX-ST, reaffirming our commitment to long-term growth.”
Outlook-wise, Oiltek expresses optimism for its three business segments as it expects the industry sectors served by its business to grow and produce opportunities. They remain cautious of the “ongoing” global economic volatility and “rising” geopolitical tensions.
The company’s orderbook stands at RM312.8 million, providing revenue visibility for the next 18 to 24 months.
Shares in Oiltek closed at 63 cents on Feb 10, representing a 4.1% or 2.5 cents increase from the previous trading day.
