Catalist-listed Oiltek International HQU has, through its subsidiary Oiltek Sdn. Bhd, secured an additional new contract from Latin America worth some RM45.5 million ($13.8 million).
The contract will see Oiltek designing, fabricating, delivering, testing and commissioning a neutralisation plant with an output of 400 metric tonnes per date (MTD). The contract, which also includes the same of one new acidulation plant and one new downstream niche product refining plant, brings Oiltek’s cumulative new contracts secured to-date in the FY2024 ending Dec 31 to RM197.8 million.
The new contract also brings Oiltek’s current order book to RM400.9 million. The order book is expected to be fulfilled over the next 18 to 24 months and is expected to contribute positively to Oiltek’s financial performance in FY2025.
“Today, we see ourselves as an agri-tech company, where we combine commercial agriculture with innovative process technology to deliver high quality products in the edible and non-edible oil value chain. Furthermore, our geographical business expansion has gained greater traction as more customers from Latin America increasingly recognise our track record for the provision of a reliable, innovative, diversified and comprehensive range of process and engineering solutions,” says Henry Yong Khai Weng, Oiltek’s executive director and CEO.
“The continued expansion of our customer footprint globally will help to ensure our sustainable growth and enhance our ability to generate higher returns for our shareholders,” he adds.
As at 11.28am, shares in Oiltek are trading 0.5 cents higher or 0.94% up at 54 cents.
