KUALA LUMPUR: Kuala Lumpur Kepong Bhd
(KLK) expects crude palm oil (CPO) prices to trade between RM3,900 and RM4,300 per tonne in the first quarter of 2026, with near-term upside seen as limited amid ample global edible oil supply.
The group noted that CPO prices peaked at around RM4,500 a tonne in October 2025 before easing to approximately RM4,100 per tonne by January 2026, reflecting higher inventories and softer demand conditions.
“Prices may be supported by the potential increase in Indonesian export levies in March 2026. At the same time, the global edible oil market remains well supplied. Overall, near-term price upside remains limited,” KLK said in the notes accompanying its financial results.
In the first quarter ended Dec 31, 2025 (1Q26), KLK’s net profit surged 73.5% to RM382.4mil, or 34.30 sen per share, from RM220.5mil, or 20.10 sen, a year earlier.
Quarterly revenue rose 6.8% to RM6.35bil compared with RM5.94bil in the corresponding quarter last year.
KLK said its plantation segment recorded a year-on-year increase of 10% in pre-tax profit to RM635mil in 1Q26, driven mainly by stronger fresh fruit bunch (FFB) yields and firm palm kernel prices.
“The group expects yield improvement to sustain, supported by ongoing agronomic initiatives. Overall plantation performance is expected to remain positive, notwithstanding seasonal yield moderation,” it said.
Meanwhile, its manufacturing segment recorded a pre-tax profit of RM42mil in 1Q26, compared to a pre-tax loss of RM53mil in the corresponding period last year.
It said the improvement was mainly attributable to the absence of substantial pre-commissioning losses and foreign exchange losses.
Looking ahead, KLK said a relatively moderate CPO price environment is expected to support trading activities.
The group said that following the completion of its major capacity expansion projects, it is now focused on driving earnings performance.
“Backed by resilient plantation operations and improving downstream contributions, the Group remains confident that it is on track to deliver a better operational performance in FY26,” KLK said.
Meanwhile, KLK’s parent Batu Kawan Bhd posted a 42.9% jump in net profit to RM182.4mil in the first quarter ended Dec 31, 2025, from RM127.6mil a year earlier.
Quarterly revenue rose 6.3% to RM6.51bil compared with RM6.12bil in the same quarter last year, while earnings per share increased to 46.90 sen from 32.70 sen previously.
