Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (May 18): IOI Corp Bhd returned to profitability with a net profit of RM748.4 million or 11.88 sen per share in its third financial quarter ended March 31, 2016 (3QFY16), driven by higher contribution from its resource-based manufacturing segment and currency translation gain of RM432.8 million.

It posted a net loss of RM188 million or 2.95 sen loss per share in 3QFY15.

Revenue grew 3.9% to RM2.87 billion in 3QFY16 from RM2.76 billion a year ago.

In a filing with Bursa Malaysia today, IOI Corp said the resource-based manufacturing segment posted a 196% increase in profit to RM305.1 million in 3QFY16 from RM102.9 million in Q3FY15, due mainly to fair value gain on derivative financial instruments of RM184.9 million.

For the cumulative nine-month period (9MFY16), IOI Corp's net profit surged 92 times to RM754.2 million from RM8.2 million in 9MFY15, while revenue grew 3.6% to RM8.92 billion from RM8.61 billion.

Moving forward, IOI Corp expects crude palm oil prices to remain firm at the prevailing level of between RM2,500 per tonne and RM2,700 per tonne during the remaining financial quarter ending June 30, 2016 in view of the increased demand for palm oil during the coming Ramadan month and festival.

"As for the resource-based manufacturing segment, the specialty oils and fats sub-segment will face challenges in the next few months with the suspension of its Roundtable on Sustainable Palm Oil (RSPO) certificates," it said.

"The group's key priority is to work towards lifting the RSPO certification suspension. The group is taking all appropriate actions to implement the action plan as required by RSPO and we expect
the actions to be completed by end May 2016," IOI Corp added.

The group also sees that the volatility of the ringgit against the US dollar will continue to impact its non-cash flow foreign exchange translation gain/loss, arising from its medium- to long-dated US dollar denominated borrowings, though at a lesser extent than two to three quarters ago.

"Overall, we expect our underlying operating results for the remaining financial quarter to be satisfactory," it said.

IOI Corp shares closed unchanged at RM4.18 today, giving it a market capitalisation of RM26.31 billion.

 

      Print
      Text Size
      Share