KUALA LUMPUR (Aug 18): Kuala Lumpur Kepong Bhd’s (KLK) net profit for the third quarter ended June 30, 2021 more than doubled to RM783.94 million, from RM368.7 million a year earlier, mainly due to a fair value surplus on the deemed disposal of an associate company.

Quarterly revenue rose 39.38% to RM5.17 billion, from RM3.71 billion, underpinned by the plantation segment, KLK said in a filing to Bursa Malaysia.

The group did not declare any dividend for the quarter.

KLK said the third quarter profit rose sharply, mainly due to the fair value surplus of RM324.3 million on the deemed disposal of associate Aura Muhibah Sdn Bhd.

The group’s plantation segment, meanwhile, reported a substantially higher profit of RM432.6 million (against RM229.4 million a year earlier), driven by higher crude palm oil (CPO) and palm kernel selling prices.

For the nine months ended June 30, 2021, KLK’s net profit jumped three folds to RM1.63 billion, from RM563.79 million in the previous corresponding period, while revenue climbed 20.61% to RM13.98 billion, from RM11.59 billion.

KLK expects its plantation profit for the full year to be significantly higher, as CPO and palm kernel selling prices are much better compared to the previous financial year.

The group’s oleochemical division has also performed well and is expected to sustain its performance in the fourth quarter, despite a challenging market environment, it added.

“For FY2021, this division’s profit is expected to be higher than the previous financial year.

“On the whole, the group's profit for FY2021 will improve substantially,” said KLK.

KLK’s share price closed 38 sen or 1.95% higher at RM19.88 today, valuing the group at RM21.17 billion.