Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 22): Kuala Lumpur Kepong Bhd (KLK) reported a 35.4% drop in its fourth financial quarter's net profit to RM242.12 million, from RM375.06 million a year ago, on higher tax expenses in the quarter ended Sept 30, 2017 (4QFY17), compared with last year.

KLK’s profit before tax (PBT) for 4QFY17 was in fact 56% higher at RM380.8 million, compared with RM243.97 million a year ago, but the group was hit by tax expenses of RM114.95 million in 4QFY17, compared with a tax credit of RM157.84 million enjoyed in 4QFY16, which was mainly attributed to deferred tax assets of RM268.03 million relating to the revaluation of biological assets by certain plantation subsidiaries in Indonesia.

Revenue for 4QFY17 was 13.7% higher at RM5.16 billion, as compared with RM4.54 billion in the previous year, on higher revenue from its manufacturing sector, through higher sales volume and better selling prices, the group said in a filing with Bursa Malaysia.

The average crude palm oil (CPO) price realised in 4QFY17 was 2.3% higher at RM2,555 per tonne, compared with RM2,497 per tonne in 4QFY16, while palm kernel prices were down 8.5% at RM2,162 per tonne, from RM2,364 per tonne a year earlier.

The group declared a final single tier dividend of 35 sen per share, which will be paid to shareholders on March 13, 2018. The entitlement date for the dividend shall be on Feb 21. This brings its total dividend payout for the year to 50 sen per share.

For the full year ended Sept 30, 2017 (FY17), KLK reported a 36.9% drop in net profit to RM1 billion, from RM1.59 billion in FY16, while revenue was 27.2% higher at RM21 billion, from RM16.5 billion.

The group’s PBT in FY17 had declined by 15.3% to RM1.45 billion, from RM1.71 billion, on absence of a surplus of RM489.3 million recorded last year, derived from the sale of a plantation land to an associate.

KLK said CPO prices have recently been supported by a slower-than-expected recovery in fresh fruit bunches (FFB) production post El-Nino, resulting in a tighter inventory than envisaged.

“Going forward, 2018 palm oil production is projected to recover strongly and coupled with an environment of ample supply of oilseeds, this may put pressure on CPO prices. Notwithstanding these factors, we expect our plantations' profit for financial year 2018 (FY18) to be satisfactory.

“The performance of our oleochemical division should improve from last year's results, even though the industry is still flush with excess capacities. Management's efforts to turn around the under-performing business units have produced encouraging results.

Overall, the group's profits for FY18 should be better,” the filing added.

KLK shares were up 4 sen or 0.16% to RM24.50 today, for a market capitalisation of RM26 billion.

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