KUALA LUMPUR (Nov 26): IOI Corp Bhd’s net profit rose 3.6% to RM149 million for its first financial quarter ended Sept 30, 2019 (1QFY20) from RM143.8 million a year ago, mainly due to higher contribution from its resource-based manufacturing segment.

This resulted in a higher earnings per share of 2.37 sen for 1QFY20 compared with 2.29 sen for 1QFY19.

Revenue for the quarter, however, fell 5.3% to RM1.78 billion from RM1.88 billion a year ago.

In a bourse filing today, the plantation group said the resource-based manufacturing segment profit rose 6% to RM136.5 million in 1QFY20 from RM129.2 million in 1QFY19.

"The higher profit is due mainly to higher sales volume and margins from refining sub-segment and higher share of associate results from Bunge Loders Croklaan Group BV. This was offset by lower sales volume and margins from oleochemical sub-segment," it added.

On prospects, IOI expects its operating performance for the remaining period of its financial year ending June 30, 2020 (FY20) to be satisfactory.

For its plantation segment, IOI expects it to perform better for the remaining period of FY20 in view of bullish palm oil prices. “Palm oil price has moved up significantly since October due to lower than expected production and strong export drawing down palm oil stocks,” it said.

As for the resource-based manufacturing segment, the group anticipates the operating environment to remain challenging amid the global economic slowdown.

IOI also expects its medium to long term US dollar-denominated borrowings will continue to remain volatile as a result of the US-China trade war and the continuing uncertainties faced by Asian currencies over the US Federal Reserve interest rate policy.

IOI shares closed unchanged at RM4.45 today, valuing it at RM27.98 billion.