Oiltek posts 37.5% profit jump with renewables driving margin

Revenue was flat at RM100.82m, inching up just 0.4% from RM100.45m in 1H2024.

Oiltek International Limited reported a 37.5% YoY jump in net profit to RM14.13m for the six months ended 30 June 2025, up from RM10.28m a year ago, as cost efficiencies and a surge in renewable energy projects lifted margins.

Revenue was flat at RM100.82m, inching up just 0.4% from RM100.45m in 1H2024. But gross profit soared 66.3% to RM32.44m, driven by improved cost management and higher-margin contracts, particularly in the Edible & Non-Edible Oil Refinery segment.

The Renewable Energy division was a standout, with revenue jumping more than sixfold to RM22.72m (from RM2.76m), buoyed by project wins in Malaysia. This offset declines in Oiltek’s core Edible & Non-Edible Oil Refinery (down 18.7%) and Product Sales & Trading (down 32.4%) segments.

Foreign exchange losses dented other income, with a RM6.21m net loss (vs. RM1.65m gain in 1H2024) due to the weaker US dollar. Still, earnings per share climbed to 3.29 sen, from 2.40 sen.

Oiltek declared an interim dividend of 0.50 Singapore cents per share, tax-exempt, following a bonus issue in May that expanded its share base from 143 million to 429 million.

On the balance sheet, the company held RM111.75m in cash, and a healthy net asset position of RM89.70m, despite a 22% drop in current assets primarily from trade receivable collections. Its order book stood at RM332.5m, expected to be fulfilled over 18–24 months.