Innoprise earnings up three-fold

PETALING JAYA: Innoprise Plantations Bhd (IPB) registered a three-fold growth in net profit to RM9.34mil for the first quarter ended March 31, 2017, as compared to the corresponding quarter last year.

Managing director Datuk Kelvin Tan attributes the stellar financial performance to higher palm product prices, improved fresh fruit bunches (FFB) crop and excellent oil extraction rate of 23.76%.

Its revenue grew 18% to RM29.46mil from RM24.93mil in the first quarter last year.

FFB production for the second quarter is expected to increase due to seasonal factor and as El Nino impact wears off.

Meanwhile, crude palm oil (CPO) prices have corrected from the high RM3,200 per tonne during the first quarter but has sustained at levels above RM2,600 per tonne.

Hence, at this price level, the board is confident of achieving a reasonably good profit for the second quarter.

Despite the lingering lagged effect of 2016 El Nino weather conditions, IPB’s FFB crop increased 22% to 34,375 tonnes.

For 2017, IPB’s crop is expected to grow by double percentage points.

“As our estate is primarily in the young mature age, we expect double-digit FFB crop growth in the next few years,” said Tan in a statement.

IPB shareholders have approved a first and final dividend of 2 sen per share in respect of financial year 2016, to be paid on June 16, 2017.

As an estimated 90% of the company’s oil palm area has now reached maturity phase, the board has approved the adoption of dividend policy amounting to 50% to 70% payout ratio, depending on the company’s liquidity position.

IPB closed 2.6% higher at RM1.20 on volume of 23,900 shares yesterday.