IOI Posts Q3 Net Profit of RM401.3mil
21/05/2021The Star

(File pic by IOI Corporation).

KUALA LUMPUR: IOI Corp Bhd posted a net profit of RM401.3mil for the third quarter ended March 31, 2021, versus just RM100,000 in the previous corresponding quarter due mainly to a one-off gain from the sale of its associate's refinery and narrower forex losses.

Revenue for the quarter under review was RM2.86bil, 40.62% higher from RM2.03bil in the comparative quarter.

In a filing with Bursa Malaysia, IOI said the group posted a total net foreign currency translation loss of RM38.4mil versus RM236.4mil in the year-ago quarter.

In its business segments, resource-based manufacturing posted a 271% higher profit of RM442.2mil in the current quarter versus Q3FY20.

The main contribution to the higher earnings was a one-off gain of RM267.9mil from the disposal of Bunge Loders Craklaan's refinery in Rotterdam.

In addition, there was higher contribution from the oleochemical sub-segment due to higher sales volume, partially offset by lower contribution from the refining sub-segment.

Meanwhile, the plantation segment posted profit of RM185.9mil, which was 12% higher year-on-year due to the higher crude palm oil and palm kernel prices, partially offset by lower fresh fruit bunch production.

Moving forward, the group said its plantation segment is expected to recover in Q4FY21 in anticipation of the continued strength of CPO prices.

For resource-based manufacturing, the refinery and commodity market as well as the oleochemical sub-segments are expected to be affected by the high palm oil and palm kernel oil prices.

Bunge Loders Croklaan is expected to perform better in Q4FY20 in the specialty fats segment due to the continued strong performance in North America and the improvement of the Covid situation in Europe.

"Overall, the Group anticipates its overall financial performance for Q4 FY2021 to remain good, supported by high CPO price and increase in crop production from the plantation segment as well as the expected demand improvement in the resource-based manufacturing segment as the global economy recovers gradually," said IOI.