Kuala Lumpur Kepong Bhd (KLK)’s earnings more than doubled in the third quarter boosted by higher palm oil prices, one-time gains from disposals and favourable exchange rates. Net profit in the three-month ended June 30 soared 112% to RM784 million from RM369 million a year ago. Revenue jumped 39% to RM5.17 billion, KLK said in a filing today.
“The Group’s year-to-date profit was boosted by non-operational gains derived from fair value surplus of RM324.3mil on deemed disposal of an associate, Aura Muhibah and surplus of RM158.4 million from sales of land and government acquisitions,” it said.
Excluding non-operational items, profit before tax of the Group would be RM621 million compared with RM286 million previously. KLK said its plantation segment reported a substantially higher profit of RM432.6 million (Q32020: RM229 million) driven by higher crude palm oil (CPO) and palm kernel (PK) selling prices. Ex-mill CPO price during the quarter under review was 54% higher at RM3,444 a tonne, while PK selling price jumped 81% to RM2,387 a tonne.
However, the gains were offset by a 4.5% drop in fresh fruit bunch (FFB) production to 968,440 million tonnes. KLK doubles Q3 profit as palm oil prices soar. “Plantation profit for FY2021 will be significantly higher as CPO and PK selling prices are much better compared to last financial year,” it said.
The group’s manufacturing profit surged 94% to RM207 million, supported by 35% increase in revenue to RM2.83 billion. “The sharp rise in profit was contributed by much better performance from Malaysia, China and Europe operations,” KLK said. The oleochemical division’s profit had doubled at RM207.8 million, whilst other manufacturing units had posted a loss of RM303,000. “Oleochemical division has performed well and is expected to sustain its performance in the 4th quarter despite a challenging market environment. For FY2021, this division’s profit is expected to be higher than the previous financial year,” KLK said.
KLK’s property division reported a profit of RM15.4 million.
from The Star, 19 August 2021