Oiltek International has reported earnings of RM9.7 million for FY2021 ended Dec 31 2021, down 19.5%, as the newly-listed company booked one-off costs from its IPO.
Without which, the company’s net profit would have been RM12.2 million, up just 1.3%, even though revenue for the year was up 15% to RM100.6 million.
The company, which listed in early March, suffered from significantly lower gross profit margin of 23.4%, down 8.2 percentage points. Oiltek explains the better margins secured in the preceding FY2020 was because of higher margins for its projects secured in Africa.
Oiltek helps build plants and facilities for refiners, including that of edible oil. It was spun off for its separate listing from Koh Brothers Eco Engineering.
Oiltek’s CEO Henry Yong Khai Weng describes FY2021 as a “challenging” year because of the fallout from the pandemic and also because the company “had to incur one-off listing expenses.”
“Nevertheless, we still managed to deliver a positive result with our resilient business model and strong management,” he adds.
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The company says it has a “strong” pipeline of projects with some RM49.2 million in new contracts won year to date, bringing the total orderbook to RM198.1 million.
Going forward, Oiltek sees the recent hike in world commodity prices of both vegetable oil and fossil fuel as a “strong catalyst” for “further positive developments”, as the industry will have bigger budgets to fund expansion.
Oiltek shares closed April 11 at 22 cents, unchanged for the day. Its IPO was priced at 23 cents.
