- Oiltek International (SGX:HQU) has entered into a RM1.4b HOA with Bioseaga Industries Sdn Bhd (Bioseaga) for the construction services of a SAF production facility with a planned capacity of approximately 300 metric tonnes per day in Sabah, Malaysia.
Building a major SAF facility in Sabah.
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- Oiltek shall also provide the preliminary necessary technical expertise and data reasonably required by Bioseaga and its advisor for financial modelling and project planning.
Right to participate in equity ownership enables significant future recurring estimated earnings of RM16m-32m.
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- We estimate that a 10% stake in the plant could generate around RM14m-28m of recurring earnings per annum, based on 10-20% ROI of the plant’s RM1.4b construction value. This is a significant sum, equivalent to 45-90% of Oiltek’s 2025 earnings.
High ROE and margin engineering firm which enables direct exposure to the high-growth renewable fuel segment to achieve 2050 net zero carbon emission.
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