Oiltek reports 2H21 profit after tax fell 25 percent

Palm kernels at a plantation in IndonesiaPalm kernels at a plantation in Indonesia

Oiltek International reported Monday its second half profit after tax fell 25.1 percent on-year to MYR5.36 million, mainly on expenses for its listing on SGX’s Catalist board

Profit after tax excluding listing expenses for the July-to-December period rose 9.9 percent on-year to MYR7.86 million, the company said in a filing to SGX. 

Revenue for the six month period increased 16.5 percent on-year to MYR53.41 million, on higher revenue from the edible and non-edible oil refinery segment, partly offset by lower revenue from the renewable energy segment and the product and sales trading segment, Oiltek said. 

Malaysia-based Oiltek engineers and builds edible-oil refining plants, and its renewable energy division designs and builds biogas recovery plants for palm-oil mill effluents and multi-feedstock biodiesel plants.

For the full year, Oiltek reported profit after tax fell 19.5 percent on-year to MYR9.71 million on revenue of MYR100.63 million, up 15 percent on-year.

Henry Yong Khai Weng, executive director and CEO of Oiltek, said 2021 was challenging due to the pandemic and due to one-off listing expenses.

“We still managed to deliver a positive result with our resilient business model and strong management. We saw decent growth because of new projects secured in the edible and non-edible refinery segment and our pipeline of projects continues to be strong,” Yong said in the statement. He noted the company had obtained MYR49.2 million in new contracts so far this year.

Outlook

Oiltek issued a positive outlook. 

“The group believes that the recent hike in the world commodity prices of both vegetable oil and fossil fuel have become a strong catalyst for further positive developments in both the edible oil and renewable energy segments,” Oiltek said. 

“The industry players in both segments that have benefited from strong revenue growth are now believed to have higher expansion budgets for integration and diversification that is vital for long term sustainability,” Oiltek said.

Read more details of Oiltek’s results.

 

Click here to follow more financial news on Shenton Wire.