Highlight IOI Corp 2Q net profit falls 8.3% to RM487m, announces 8 sen dividend

by **Cals** Tue 25 Feb 2014, 17:24

Highlight IOI Corp 2Q net profit falls 8.3% to RM487m, announces 8 sen dividend

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Tuesday, 25 February 2014 13:58

KUALA LUMPUR (Feb 25): IOI Corporation Bhd’s net profit for its second quarter fell 8.3% to RM487.1 million from RM531.0 million in the previous year’s same quarter.

Its revenue for the quarter also declined 9.5% year-on-year (y-o-y) to RM2.94 billion from RM3.25 billion.

The group attributed its lower net profit for the quarter to a translation loss of RM14.0 million on foreign currency denominated borrowings.

“Excluding the translation difference on foreign currency denominated borrowings for both 2QFY14 and 2QFY13, the underlying profit of the group for 2QFY14 is 13% higher than 2QFY13, which is driven by higher contribution from all major segments,” said the group in its filing with Bursa Malaysia.

Its plantation, resource-based manufacturing, property development and property investment segments had all reported higher profits for the quarter.

Looking ahead, the group expects palm oil prices to continue rising, supported by lower stocks, higher biodiesel mandates in Malaysia and Indonesia, and the current hot and dry weather affecting oil palm output in both countries.

“With higher contributions expected from the newly acquired Unico-Desa estates in Sabah and our associate company in Indonesia, the group expects its plantation division to perform better than the last financial year.

“Overall, the group’s performance for the remaining quarters is expected to be satisfactory,” said the group.

For its half year to December (6MFY14), net profit was lower at RM788.9 million from RM1.14 billion in 6MFY13, while revenue decreased slightly to RM6.18 billion from RM6.38 billion.

A dividend of 8 sen per share was declared by IOI, to be paid on 21 Mar 2014.