Oiltek International (HQU) H2 2025 earnings summary

Executive summary

• FY2025 net profit rose 7.9% YoY to RM32.0m despite revenue declining 8.2% to RM211.4m; excluding FX losses/gains, net profit increased 48.7% to RM40.2m.

• The order book stood at RM312.8m, while year-end cash was RM99.7m and debt was zero.

Financial highlights

• Revenue fell 8.2% YoY to RM211.4m; gross profit rose 24.8% to RM68.7m.

• Profit before income tax increased 8.2% YoY to RM42.8m; profit after tax rose 7.9% to RM32.0m.

• Basic and diluted EPS increased 7.8% YoY to 7.5 sen.

• Excluding FY2025 FX losses of RM8.2m and FY2024 FX gains of RM2.6m, net profit rose 48.7% to RM40.2m from RM27.0m.

Outlook and guidance

• Cautiously positive overall outlook, barring unforeseen circumstances; order book of RM312.8m is expected to be fulfilled over 18–24 months.

• Pursuing larger-scale refinery projects in existing and new markets, supported by demand growth in fats, oils and vegetable oils.

• Renewable energy strategy includes developing new processes and evaluating commercially viable joint ventures aligned with business objectives.

• Capabilities in POME treatment and vegetable-oil feedstock processing position the business across the HVO/renewable diesel-to-SAF value chain.