KUALA LUMPUR (Nov 25): Keck Seng (Malaysia) Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) more than tripled to RM61.59 million from RM17.56 million in the same period last year on better refining margins and higher foreign exchange gains for its manufacturing segment.

Better occupancy and average room rates for the group’s three overseas hotels, besides a one-off gain from waiver of loan received by foreign subsidiaries in the United States of America, under Paycheck Protection Program also contributed in uplifting Keng Seng’s earnings.

Earnings per share was up at 17.14 sen from 4.89 sen previously, the integrated palm oil producer and property developer's bourse filing on Friday (Nov 25) showed.

Quarterly revenue climbed 34.13% to RM441.61 million from RM329.25 million in the same period a year ago.

Keng Seng’s manufacturing segment recorded a higher revenue in 3QFY22 mainly due to higher selling price and quantity of refined oil sold in the quarter, while the group’s hotels segment also saw an increase in revenue on higher average room rate and occupancy rate for its hotels overseas as a result of rebound in demand after the easing of travel restrictions and pandemic lockdown measures.

For the first nine-month period, Keck Seng’s net profit rose almost five times to RM159.28 million from RM32.23 million as cumulative nine-month revenue grew 62.59% to RM1.45 billion from RM893.77 million.

Looking ahead, Keng Seng noted the on-going armed conflict in the Ukraine has triggered a global fluctuation of prices of commodities.

Together with the on-going Covid-19 pandemic, US-China-Taiwan tensions, the extreme global climate change, rising interest rates and volatility of currency exchanges, these are likely to create further global security and economic uncertainties which may affect the financial performance of the group this year.

Keck Seng’s share price finished on Friday one sen or 0.29% higher at RM3.49, bringing the group a market capitalisation of RM1.26 billion.