Oiltek International (HQU) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 22.8% YoY to RM201.1 million and net profit after income tax increased 50.9% to RM19.1 million.

• New orders reached a record RM322.1 million; the order book stood at RM361.0 million at year-end.

Financial highlights

• Gross profit increased 28.3% to RM39.2 million; profit before income tax rose 44.1% to RM25.5 million.

• Basic and diluted EPS increased 46.9% to 13.4 sen from 9.1 sen in FY2022.

• Cash and bank balances rose 96.6% to RM132.5 million; total assets increased 51.2% to RM185.2 million.

• Total liabilities increased 70.3% to RM117.5 million; net assets rose 26.7% to RM67.7 million.

Outlook and guidance

• Current order book of RM361.0 million is expected to be fulfilled over the next 18–24 months, barring unforeseen circumstances.

• Outlook is expected to remain positive, with performance driven primarily by growth in served industries, subject to global economic uncertainties.

• Plans to pursue larger-scale refinery projects in existing and new markets and expand into markets with emerging prospects.