Shares in Oiltek International HQU rose to 90.5 cents as at 9.46am, 5.23% higher than the 86-cent close the day before, after the company reported a surge in its results in its 3QFY2024 and 9MFY2024 ended Sept 30 update.
During the 3QFY2024, Oiltek’s profit after income tax surged by 83.2% y-o-y to RM8.98 million ($2.7 million), bringing its 9MFY2024 profit after tax to RM19.3 million, 63.9% higher y-o-y.
3QFY2024 revenue increased by 14.5% y-o-y to RM67.6 million while 9MFY2024 revenue was up by 23.8% y-o-y to RM168.1 million. This was due to higher revenue from Oiltek’s edible and non-edible oil refinery segment and product sales and trading segment. This was partly offset by lower revenue from renewable energy.
Gross profit for the quarter rose by 75.2% y-o-y to RM19.9 million as gross profit margin (GPM) increased by 10.2 percentage points y-o-y to 29.5%. The higher GPM was thanks to an increase in GPM in the edible & non-edible oil refinery segment.
9MFY2024 gross profit grew by 57.6% y-o-y to RM39.4 million as GPM increased by 5.1 percentage points y-o-y to 23.5%.
In its outlook statement, Oiltek says it remains confident about the long-term outlook of its edible & non-edible oil refinery segment with the global consumption of oils and fats growing in line with population growth.
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Amid the population growth and higher demand for food, Oiltek notes that there is a corresponding demand for edible and non-edible oils and fats, specifically, vegetable oils. “This trend potentially benefits the group as it provides solutions that cater to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, which are some of the major agricultural commodities in the world,” says Oiltek in its Nov 19 statement.
It adds that it expects its businesses to be driven primarily by the corresponding growth in the industries it serves; the overall outlook is expected to remain positive.
As at Nov 19, Oiltek has an order book of RM400.9 million, which is expected to be fulfilled over the next 18 to 24 months.
