KUALA LUMPUR: Kim Loong Resources Bhd
, which posted a net profit of RM36.74mil in the third quarter ended Oct 31, 2022 (3Q22), expects to perform well and achieve record revenue and profit for the financial year ending Jan 31, 2023 (FY23).
The oil palm planter forecast its fresh fruit bunches (FFB) production for FY23 to be 7% higher than in FY22.
“As for palm oil milling operations, the management expects the total processing quantity to surpass 1.5 million tonne of FFB for the current financial year.
“Our biogas plant in Keningau, Sabah, has commenced the supply of power to the grid in December 2022 and we expect our biogas plant at Telupid to commence operations in the first half of FY24,” Kim Loong said in a filing with Bursa Malaysia.
It added that the price of crude palm oil (CPO) had become volatile but the group would continue to monitor the impact on its performance.
“Although the current high production season might pressure CPO prices, management expects the average CPO price for the remaining period of FY23 to be around RM4,000 per tonne.
“It believes the group could still benefit from the current CPO price level, especially the plantation operations,” Kim Loong said.
The company also pointed out that that it faced a significant surge in fertiliser and labour costs.
Nevertheless, Kim Loong expects to perform well and achieve a record-high revenue and profit in FY23.
For 3Q, Kim Loong’s revenue fell 18.3% year-on-year (y-o-y) to RM402.4mil, as revenue and profit from it milling operation was lower due to reduced sales quantity and average selling prices.
Earnings per share (EPS) for the quarter stood at 3.80 sen.
Kim Loong has declared a special single-tier dividend of five sen per share in respect of FY23, with entitlement date on Jan 20, 2023, and payable on Feb 16, 2023.
For the nine months, Kim Loong had posted a net profit of RM125.64mil or EPS of 13 sen, up 19% y-o-y, driven by a 22% y-o-y growth in revenue to RM1.48bil on higher CPO prices and FFB output.
As at Oct 31, the group’s total planted area (excluding land for infrastructure, unplantable land and area under development) is at 15,940ha.
