Kim Loong Resources 1Q earnings jump 49% to RM19.9m

KUALA LUMPUR: KIM LOONG RESOURCES BHD []’s earnings jumped 49% to RM19.91 million from RM13.36 million a year ago boosted by its PLANTATION []s business, underpinned by the strong crude palm oil (CPO) prices.

It said on Monday, June 27 revenue rose 37.9% to RM175.15 million from RM127 million while earnings per share were 6.52 sen versus 4.39 sen a year ago. Pre-tax profit rose 68% to RM35.16 million from RM20.89 million.

“The 38% and 68% increases in revenue and PBT respectively were mainly due to higher CPO and palm kernel oil prices which were about 38% and 91% respectively higher than the corresponding period last year,” it said.

Kim Loong said the profit from plantation operation for the period under review was RM34.07 million which was about three times of RM11.38 million a year ago.

“The significant increase in profit was contributed by both higher palm oil prices and FFB production. The FFB production for the period under review was 70,900 tonnes, an increase of 35% or 18,400 tonnes as compared to 52,500 tonnes a year ago,” it said.

It said the increase in production was mainly from its estates in Keningau region which had recovered from low crop season in last year.

As for the milling operation, the profit was RM5.30 million, down 40% from RM8.80 million a year ago.

Total CPO production for the period under review was 46,500 tonnes, an increase of 12% from 41,700 tonnes a year ago.

“For the plantation operations, we expect the FFB production to recover from its low production yield cycle in the financial year 2011 and hope to achieve at least 20% increase in the financial year 2012. We also expect the palm oil prices to remain high but volatile in the financial year 2012,” it said.