Oiltek International (HQU) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was RM100.82m, up 0.4% YoY; profit after tax rose 37.5% to RM14.13m. Excluding other losses/gains, net profit increased 135.9% to RM20.3m.

• Cash and bank balances were RM111.75m at 30 June 2025, with net assets of RM89.70m; signed-order backlog was RM332.5m for fulfilment over 18–24 months.

Financial highlights

• Revenue was RM100.82m, up 0.4% YoY; cost of sales fell 15.5% to RM68.38m and gross profit rose 66.3% to RM32.44m.

• Profit before tax increased 36.1% to RM19.16m; profit after tax rose 37.5% to RM14.13m.

• Excluding other losses/gains, net profit was RM20.3m versus RM8.6m in H1 2024, up 135.9%.

• Other losses, net, were RM6.21m versus a RM1.65m gain in H1 2024, mainly from unrealised FX losses as the US dollar weakened against the Malaysian ringgit.

• Basic and diluted EPS was 3.29 sen versus 2.40 sen; comparative figures were retrospectively adjusted for the bonus issue.

Outlook and guidance

• Outlook was expected to remain positive, driven by growth in served industries, barring unforeseen circumstances; the long-term refinery and renewable energy outlook was viewed positively.

• Unfulfilled signed contracts, confirmed variation orders and letters of award totalled RM332.5m, expected to be fulfilled over 18–24 months.

• Strategy includes pursuing larger projects in existing and emerging markets and developing renewable-energy processes and solutions for customers.