Kim Loong 4Q profit slips 63% to RM8.6m

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KUALA LUMPUR: Kim Loong Resources Bhd posted a net profit of RM8.61 million for the fourth quarter (4Q) ended Jan 31, 2009, down 63% from RM23.21 million a year earlier, in line with a 47% drop in revenue to RM80.14 million from RM150.36 million previously.

It proposed a final dividend of three sen per share, bringing total dividends for financial year 2009 (FY09) to 36 sen per share.

For the whole year, revenue grew 8% to RM507.09 million from RM469.88 million in FY08, while net profit rose 12% to RM65.27 million from RM58.52 million previously.

The growth in full-year revenue was due to higher crude palm oil (CPO) price and higher production of fresh fruit bunches (FFB) compared with the previous corresponding period, it said.

It added that the profit from plantation operation rose 14% or RM10.73 million to RM86.38 million, as a result of the better CPO prices and about 10% increase in FFB production by 24,000 tonnes year-on-year.

"As for the milling operation, the profit dropped by 19% or RM4.52 million to RM19.27 million, mainly due to inventory write-down as a result of the steep decline in palm oil product prices in the second half of the financial year," it said.

On the prospects of FY10, Kim Loong expected further increase in the production from both the plantation and milling operations compared with FY09.