KUALA LUMPUR (March 31): Borneo Oil Bhd’s net profit for its fourth  quarter ended Jan 31, 2017 (4QFY17) more than quadrupled to RM10.74 million from RM2.46 million a year earlier, despite a plunge in its revenue.

In a filing with Bursa Malaysia, the group said revenue tumbled 83.8% to RM30.74 million from from RM190.19 million in 4QFY16.

However, this was offset by higher other income, which improved from RM412,000 to RM14.43 million, as well as higher profit from operations, which rose to RM10.31 million from RM4.37 million a year ago.

Borneo Oil said that overall profit for 4QFY17 was mainly contributed by the fast food franchise, head office and property divisions.

For the full financial year (FY17), the group’s net profit more than tripled to RM47.42 million from RM11.13 million in FY16. Revenue fell 43% to RM159.52 million from RM279.96 million.

On outlook, Borneo Oil, which is also involved in the gold mining business, opined that gold prices will continue to remain strong despite the second hike in interest rate by the US Federal Reserve.

With that, the group is expecting to continue benefiting from on-going drilling at Bukit Ibam, Pahang. The first phase have encountered up to 68,814 troy oz of gold reserves while the drilling on the second phase yielded an additional 25,000 troy oz of reserves.

“The company is optimistic that by the end of its drilling programme, more gold reserves will be found, determined and measured,” it said.

Meanwhile, it noted that its pilot heap leaching project is having some minor adjustments and delays mainly due to weather inclement, but barring unforeseen circumstances, it is estimated to start test runs within the next three months.

On its limestone mining activities, Borneo Oil said that the limestone block production division is “in full swing and will be a major bottom line contributor” to the group in 1QFY18.

As for the fast food franchise business, the new SugarBun Ltd grab-and-go concept under “Broasted by SugarBun” is ready to be launched in parts of peninsular Malaysia, Sabah, Singapore and Kalimantan in the next 12 months, based on a concept of a "one track mind food choice" low entry, fast returns and “empowerment of entrepreneurships”, it said.

On the other hand, the group’s first Biofraction plant — which will convert palm oil biomass to biochar, biofuel and biogas — will be ready for commercial test run in six months’ time. It said that the plant is presently being installed and will have a capacity of converting 25 tonnes of biomass a day.

Borneo Oil’s share price settled 2.7% higher at 19 sen today, valuing the group at RM575.47 million.