KUALA LUMPUR (Aug 20): Batu Kawan Bhd’s net profit was slashed by more than half to RM50.83 million in the third quarter ended June 30, 2019 (3QFY19), from RM106.67 million a year ago, mainly due to lower earnings from its plantation segment.

The lower profit in the plantation business, which saw a 78.6% decrease to RM40.43 million, was impacted by weaker crude palm oil (CPO) and palm kernel (PK) prices, the group said in a filing with Bursa Malaysia.

Earnings per share slipped to 12.79 sen, from 26.57 sen a year ago.

Batu Kawan’s quarterly revenue was also down by 14.5% to RM3.82 billion, from RM4.47 billion in the same period last year.

For the cumulative nine months ended June 30, 2019 (9MFY19), the group’s net profit was down 7.5% to RM266.8 million, versus RM288.43 million a year ago, while revenue declined 17.13% to RM12.12 billion, from RM14.63 billion.

On prospects, the group said it is expecting a reduced profit for the current financial year.

“The group’s plantation division profit for the financial year 2019 will be lower than the preceding year’s, in view of low prevailing CPO and PK prices,” Batu Kawan said.

The performance of the group’s oleochemical division, on the other hand, should be sustained with better margins from lower raw material prices, Batu Kawan said.

As for the group’s industrial chemical division, the group said profits from both chlor-alkali and sulphuric acid businesses are projected to be satisfactory, despite higher energy and raw material costs.

Batu Kawan’s share price fell 12 sen or 0.74% to close at RM16, valuing the group at RM6.32 billion.