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IOI Corp Q1 earnings jump 243% to RM360m
17/11/2017The Star



KUALA LUMPUR: IOI Corporation Bhd's earnings surged 243% to RM360mil in the first quarter ended Sept 30, 2017, boosted by net foreign currency translation gain and higher contribution from the resource-based manufacturing segment.

The plantation giant reported on Friday the earnings had jumped from RM104.80mil while profit before taxation (PBT) surged to RM450.1mil from RM136mil.

IOI Corp said the higher PBT was due mainly to net foreign currency translation gain on foreign currency denominated borrowings and lower fair value loss on derivative financial instruments from the resource-based manufacturing segment, offset by lower fair value gain on biological assets.

However, if the net foreign currency translation gain of RM68.6mil, fair value loss on derivative financial instruments RM21.5mil and fair value gain on biological assets of RM1mil were excluded, the underlying PBT of RM402mil was 26% higher than the underlying PBT of RM319.2mil a year ago.

The higher underlying PBT was due mainly to higher contribution from the resource-based manufacturing segment.

IOI Corp's revenue slipped 5.3% to RM2.20bil from RM233bil.

Plantation profit fell 12% to RM305.6mil from RM346.6mil a year ago mainly due to lower fair value gain on biological assets of RM1mil compared with a gain of RM35.4mil a year ago.

Excluding the fair value gain on biological assets, the underlying profit for plantation segment was lower at RM304.6mil compared with RM311.2mil a year ago.

As for the resource-based manufacturing segment, it recorded a profit of RM106.6mil versus a loss of RM5.6mil a year ago.

Excluding the fair value loss on derivative financial instruments, the underlying profit for resource-based manufacturing segment of RM128.1mil was 212% higher than the RM41mil a year ago.

This was mainly due to higher margins from the oleochemical and refining sub-segments as well as higher sales volume from the oleochemical sub-segment.


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