PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) net profit for its first quarter ended Dec 31, 2021 surged nearly 70% to RM599.32mil from RM357.41mil in the previous corresponding period, boosted by strong performances from the group’s plantation and manufacturing divisions.

       Revenue in the first quarter increased to RM6.83bil from RM4.30bil a year earlier.

       In a filing with Bursa Malaysia yesterday, KLK said its plantation profit more than doubled to RM607.9mil during the quarter, boosted by significantly higher crude palm oil (CPO) and palm kernel (PK) selling prices.

       “However, the increase in profit was partially offset by a higher unrealised loss of RM28.7mil from fair value changes on outstanding derivative contracts.”

       Meanwhile, KLK’s manufacturing division reported a 74% improvement in profit to RM319.6mil, on the back of a 55.7% increase in revenue to RM5.51bil and unrealised gain of RM44.9mil from fair value changes on outstanding derivative contracts.

       “The oleochemical division’s profit was 86.2% higher at RM240.7mil. The improvement in profit was contributed by better performance from all regions.

       “Profit from refineries and kernel crushing operations surged 58.5% to RM79.1mil whilst other manufacturing units posted a loss of RM211,000.”

       Meanwhile, KLK’s property segment’s profit fell 14.5% to RM18.8mil, despite a higher revenue of RM56mil. Commenting on its prospects, KLK said its plantation profits for 2022 are expected to be better, supported by buoyant CPO and PK prices and profit contribution from newly acquired subsidiaries.

       “Despite a challenging operating environment posed by the volatility of raw material prices and intense competition, the performance of the manufacturing division is projected to be satisfactory for 2022,” it said.

       Meanwhile, KLK’s major shareholder, Batu Kawan Bhd, saw its net profit for the first quarter ended Dec 31, 2021 jump more than 70% to RM330.73mil from RM191.35mil in the previous corresponding period, also due to solid performances from its plantation and manufacturing divisions.

       Revenue in the first quarter surged to RM7.1bil from RM4.44bil a year earlier.

       In view of higher CPO prices, together with profit contributions from newly acquired subsidiaries, Batu Kawan said its plantation segment is expected to continue its strong performance this year.

       “The oleochemical division expects to operate satisfactorily for the financial year 2022, despite challenges,” it said.