(File pic by IOI Corporation).

KUALA LUMPUR: IOI Corp Bhd posted a 66% jump in net profit in the second quarter ended Dec 31, 2020, to RM355.7mil from RM213.5mil in the previous corresponding quarter on the back of higher contribution from the plantations segment.

Revenue was up 25.55% to RM2.45bil from RM1.96bil in the comparative quarter.

The board of directors declared a first interim dividend of 4.5 sen per share, payable on March 19, 2021.

In 2Q, the plantations segment posted a 94% higher profit of RM340.3mil from RM175.3mil in the previous corresponding quarter due to higher crude palm oil (CPO) and palm kernel (PK) prices as well as a higher share of associate results.

In the resource-based manufacturing segment, profit for the quarter fell 29% to RM21.2mil from RM29.9mil a year earlier due to lower contribution from the oleochemical sub-segment with lower margins.

The share of results from specialty fats associate Bunge Loders Croklaan Group BV was also lower due to weaker performances in Europe and Asia arising from the Covid-19 pandemic.

Over the first half of the financial year, IOI's net profit surged to RM633.6mil, 74.8% higher year-on-year (y-o-y) as compared to RM362.5mil in the first half of the previous financial year.

Cumulative revenue over the two quarters was also higher, at RM4.93bil versus RM3.73bil in the previous corresponding period.

Moving forward, IOI expects the high price trend of CPO to be sustained at least until April 2021 due to low palm oil stock and the high price of competitive vegetable oils.

"Thereafter, CPO price may moderate from this high price level as palm crop production recovers from the seasonal low trend and the impact of heavy rain in both Malaysia and Indonesia during January and February this year," it said.

On the back of the high CPO prices, IOI expects its plantation segment to perform well over the remaining two-quarters of FY21.

"Overall, the Group anticipates its overall financial performance for the remaining periods of FY2021 to be good, with strong performance from the plantation segment partly offset by weaker performance from the resource-based manufacturing segment," it said.