IOI Corp's plantation profit nearly doubles

IOI Corp Bhd's Lipid Enzymtec plant in Pasir Gudang. The plant is part of a plant complex inclusive of an oleochemical plant and a refinery. IOI plans to construct its own palm oil refinery and downstream plants in Indonesia by 2015.

PETALING JAYA: IOI Corp Bhd said profits from its plantation division almost doubled in the third quarter ended March 31 on the higher price of crude palm oil (CPO), but the group’s overall results were affected by lower sales and a thinner margin derived from its oleochemical and refining units.

The group said its performance was also affected by the smaller net foreign exchange (forex) translation gains on its overseas borrowings and lower fair-value gains on its derivative financial instruments from the group’s resource-based manufacturing segment.

IOI Corp, in a filing with Bursa Malaysia on Tuesday, said its net profit for the quarter fell 58.1% to RM305.3mil, although revenue increased 21.2% to RM3.5bil.

Excluding the forex gains, the group said its underlying profit before tax (PBT) of RM246.3mil for the quarter was 12% higher year-on-year (y-o-y). 

The higher underlying PBT, it said, was mainly due to the higher contribution from the plantation segment.