Oiltek International (HQU) Q3 2025 TU earnings summary

Executive summary

• 3Q2025 revenue fell 29.8% YoY while profit after tax rose 6.2%; 9M2025 revenue declined 11.8% and profit after tax increased 22.9%.

• Higher gross margins in the Edible & Non-Edible Oil Refinery and Product Sales and Trading segments supported profit growth despite lower revenue.

Financial highlights

• 3Q2025 revenue was RM47.44m, gross profit RM17.62m, profit before tax RM13.02m and profit after tax RM9.54m.

• 9M2025 revenue was RM148.26m, gross profit RM50.06m, profit before tax RM32.18m and profit after tax RM23.67m.

• 9M2025 gross profit increased 27.0% YoY, compared with revenue down 11.8% YoY.

Outlook and guidance

• Overall outlook is expected to remain positive, barring unforeseen circumstances, with businesses primarily driven by growth in their respective industry sectors.

• Signed-contract, confirmed variation-order and letter-of-award backlog stood at RM361.6m, expected to be fulfilled over 18–24 months, barring unforeseen circumstances.

• Long-term demand opportunities include expanding fats and oils consumption and biodiesel blending mandates in Indonesia and Malaysia.

• SAF demand is a growth opportunity; capabilities include plants treating POME and other vegetable-oil feedstocks for HVO or renewable diesel that can be upgraded to SAF.