KUALA LUMPUR: Kim Loong Resources Bhd
expects the average crude palm oil (CPO) price for the financial year ending Jan 31, 2024 (FY24) 2024 could stand above RM4,000 per tonne.
The plantation group is in view that it could still benefit from the current level of CPO price, especially the plantation operations.
“Having said that, the industry outlook still remains challenging if labour shortage problem does not improve,” it said.
The management forecasts the FFB production for the current FY24 could be 15% higher than the quantity achieved in FY23 on account of more replanted areas coming into maturity and better age profile of young palms productive area.
“As for palm oil milling operations, the management expects the total processing quantity could maintain at least 1.5 million tonnes of fresh fruit bunches (FFB) for the current financial year.
“Our biogas plant at Keningau has commenced supply of power to the grid in December 2022 and we expect this plant could contribute positively to revenue in the financial year 2024.
“On the other hand, we expect our biogas plant at Telupid could commence operations in the second half of the financial year 2024,” Kim Loong said in the note accompanying its financial results.
In the fourth quarter ended Jan 31, Kim Loong’s net profit rose 19.2% to RM37mil, or earnings per share of 3.82 sen from RM31mil, or 3.21 sen a year ago.
Revenue, however, fell 13% to RM431.8mil from RM496.6mil a year prior.
Kim Loong has declared a final single tier dividend of 5 sen per share in respect of FY23.
For FY23, it posted a net profit of RM162.6mil on revenue of RM1.9bil.
