Oiltek International bags RM49.2m in new contracts

Singapore

OILTEK International's subsidiary in Malaysia has secured new contracts amounting to some RM49.2 million (S$15.8 million) to date for its current fiscal year ending Dec 31, 2022.

In its announcement on Monday (Apr 4), the Catalist-listed company said its most recent contract win entails the design, fabrication, supply and commissioning of a crude palm kernel oil refinery plant and a lauric refinery plant with ice condensing vacuum systems in Indonesia.

The refinery plants will each have a capacity of 1,500 tonnes per day and 600 tonnes per day, respectively, upon completion.

While the value of the contract was undisclosed, the group said its order book has now reached a "new historical high" of about RM198.1 million.

The total order book is expected to be fulfilled over the next 18 to 24 months and includes a new 1,000 tonnes per day physical refinery plant in Malaysia, as well as a dry fractionation plant in Africa.

"Indonesia, as the world's leading producer of palm oil, is an important market for us and we intend to continue to grow our footprint there," said Henry Yong, executive director and chief executive of the group, of the latest contract win.

"We aim to maintain our growth momentum with the continued acquisition of projects in both the edible and non-edible oil refinery and renewable energy segments so as to build up our order book," he added.

Shares of Oiltek ended down S$0.005 or 2.2 per cent at S$0.22 on Monday, following the announcement.