KUALA LUMPUR (Dec 28) : Kim Loong Resources Bhd’s net profit for the third quarter (3Q) ended Oct 31, 2021 rose 42.49% to RM41.09 million, from RM28.84 million a year ago, on higher crude palm oil (CPO) prices.

Revenue surged 76.89% to RM492.8 million from RM278.6 million, the plantation group’s filing to Bursa Malaysia showed.

Kim Loong declared a special dividend of four sen per share, which will be paid on Feb 17.

For the nine months ended Oct 31, 2021, the group’s net profit increased 24.41% to a record high of RM105.62 million, from RM84.9 million in the same period last year.

Nine-month revenue soared 67.99% to RM1.21 billion from RM717.94 million.

Kim Loong said its plantations operations registered higher revenue and profit during 3Q and year-to-date, compared to the corresponding periods last year, as the average fresh fruit bunch (FFB) selling price rose by 49% and 70% respectively.

Its also recorded higher revenue from palm oil milling operations, mainly owing to higher average CPO selling price.

Kim Loong expects its full-year financial results to be good despite the sharp retraction in the CPO price from RM5,000 per tonne in May to RM3,500 in June, as the price has since recovered to the record high level of RM5,500 in November .

The management expects the average CPO price to remain above RM5,000 in the final financial quarter.

Based on recent observation of production output, the management forecasts the FFB production for FY22 could be about 95% of the quantity achieved in FY21 after taking into consideration the impact of ongoing replanting programmes, labour shortage and seasonal factor on cropping trend.

As for palm oil milling operations, the management expects a total processing quantity of about 1.45 million tons of FFB, which is close to 10% higher than in FY21.

The performance of the milling operations will also be supplemented by revenue of about RM5 million from supplying power to the grid, the group said.

Kim Loong’s share price closed two sen or 1.27% higher at RM1.60 on Tuesday (Dec 28), valuing the group at RM1.53 billion.