Friday, September 30, 2011

Kim Loong 2Q net profit surges 178% to RM33.92m

KUALA LUMPUR: KIM LOONG RESOURCES BHD [] net profit for the second quarter ended July 31, 2011 surged 178% to RM33.29 million from RM11.94 million, due mainly to higher production of crude palm oil (CPO) and palm kernel oil (PKO).

It said on Friday, Sept 30 that its revenue for the quarter rose to RM227.53 million from RM139.02 million in 2010.

Earnings per share rose to 10.88 sen from 3.92 sen, while net assets per share was RM1.57.

The company also announced a single tier interim dividend of 6% in respect of the year ending Jan 31, 2012.

For the six months ended July 31, Kim Loong's net profit rose to RM53.19 million from RM25.3 million in 2010, on the back of an increase in revenue to RM402.68 million from RM266.02 million.

Reviewing its performance, Kim Loong said fresh fruit bunch (FFB) production increased 36% to 154,000 metric ton from 112,900 metric ton a year ago.

For the period under review, the company said its profit from PLANTATION [] operations increased 175% to RM71.09 million compared RM25.83 million a year ago; and milling operations chalked up a 53% increase to RM20.57 million from RM13.44 million.

The total CPO production increased 23% to 104,700 metric ton from 85,100 metric ton a year ago, it said.

Kim Loong said the increase in production was mainly from its estates in the Keningau region which had recovered from exceptional low crop season in the corresponding period last year.

Furthermore, the prices for CPO and PKO also rose 34% and 68% respectively higher than the corresponding period a year ago, it said.

On its prospects, the company said it expects the CPO production quantity of the milling operations to be higher than previous year for FY2012.

"For the plantation operations, we expect the FFB production to recover from its low cropping yield cycle in the financial year 2011 and project to achieve at least 20% increase in the financial year 2012.

"We also expect the palm oil prices to remain satisfactory in the remaining period of the financial year 2012," it said.


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