MKH Oil Palm (East Kalimantan) Bhd chairman Tan Sri Alex Chen Kooi Chiew @ Cheng Ngi Chong.
KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd (MKHOP) is confident of satisfactory results with the favourable crude palm oil (CPO) price, according to chairman Tan Sri Alex Chen Kooi Chiew @ Cheng Ngi Chong.
The group’s prospect for the financial year ending Sept 30, 2025 (FY25) remains well-supported with strong market demand for CPO, which had been trading at approximately RM3,800 per tonne to RM4,000 a tonne in Indonesia.
“There has been ongoing strong demand for palm oil supported by Indonesia’s strong biodiesel mandate and tighter global supply. Also, the Group had continuously undertaken proactive measures to strengthen our competitiveness, including enhancing our water management system and fine-tuning our harvesting standard operating procedures, among others.
“We will continue to strengthen our performance and ensure continuous commitment in maximising efficiencies and propelling growth forward. We remain committed to leading the way in responsible and sustainable agribusiness practices,” Chen said in a statement.
In the first quarter ended Dec 31, 2024, of FY25, MKHOP posted a net profit of RM31.9mil, or earnings per share of 3.14 sen, on revenue of RM102.6mil.
No comparative quarterly figures are available, as the company was only listed on the main market of Bursa Malaysia on April 30, 2024.
The upstream oil palm plantation company based in East Kalimantan, Indonesia, said the results were driven by a combination of higher CPO and palm kernel (PK) selling prices, which have been steadily trending up and higher CPO and PK quantity sold compared tothe preceding quarter.
The company also proactively undertakes efficiency measures throughout its plantations and supply chain.
In the first quarter, MKHOP's average CPO price per tonne, net of Indonesia’s export duty and levy, was RM3,848, while its PK price per tonne stood at RM2,659. The company also recorded a total fresh fruit bunch production of 113,377 MT for the period.
To date, MKHOP has a total land area of 18,205 ha, with a planted and matured area of 17,009 ha.
MKHOP maintains a strong financial position with negligible borrowings. Its cash pile increased to RM236.15mil for the period, from RM225.22mil in the previous quarter.
