KUALA LUMPUR (Nov 16): Kuala Lumpur Kepong Bhd's (KLK) net profit more than doubled to RM375.06 million or 35.2 sen per share in the fourth financial quarter ended Sept 30, 2016 (4QFY16), from RM186.29 million or 17.5 sen per share a year ago, driven by its plantation and property business sectors.

Revenue rose 15.5% to RM4.54 billion in 4QFY16, from RM3.93 billion in 4QFY15.

It also declared a final dividend of 35 sen per share for the financial year ended Sept 30, 2016 (FY16), payable on March 14, 2017. The total dividend for the year is 50 sen per share, compared with 45 sen per share in FY15.

In a filing with Bursa Malaysia today, KLK said its plantations profit was 20.1% higher at RM218.6 million in 4QFY16, compared with RM181.9 million in 4QFY15, despite lower fresh fruit bunch (FFB) production and higher cost of crude palm oil (CPO) production.

"The better profit for the quarter under review was attributed to the favourable selling prices of CPO and palm kernel," it added.

Its properties profit, meanwhile, surged 81.2% to RM19.3 million in 4QFY16, from RM10.6 million a year ago, on the back of a much higher revenue of RM60.6 million from RM21.7 million. 

For the full year FY16, KLK saw its net profit jump 83% to RM1.59 billion from RM869.91 million in FY15, while revenue increased 20.9% to RM16.51 billion from RM13.65 billion the previous year. 

Going forward, KLK said the prevailing firm CPO price is supported by low palm oil stocks and weak ringgit.

"With the anticipated improvement in FFB production, inventories of palm oil are expected to rise and palm oil price may not hold its current level. On balance, we expect the plantations profit to be satisfactory for FY17," it added.

It expects the business performance of the oleochemical division for FY17, however, to be challenging in view of the continuing difficult market conditions, sluggish demand, over capacities and bullish raw material price of crude palm kernel oil.

"The group's profit for FY17 is expected to be satisfactory," it noted.

KLK shares closed up 0.93% or 22 sen at RM23.92 today, with 842,000 shares changed hands. At this level, KLK is trading with a trailing P/E of 18.04 times, for a market capitalisation of RM25.33 billion.