KLK posts improved 3Q profit, TH Plantations CEO put on garden leave

By NUR HAZIQAH A MALEK / pic by HUSSEIN SHAHARUDDIN

Kuala Lumpur Kepong Bhd (KLK) registered a 20.5% year-on-year (YoY) increase in net profit to RM141.93 million for its third quarter (3Q) ended June 30, 2018, on the back of a stronger performance from its manufacturing and property development segments.

In an exchange filing yesterday, the integrated plantation group noted that the increase was driven by the sharp rise in revenue at its property development segment and lower raw materials cost for the manufacturing segment.

Its manufacturing segment registered a profit of RM83.5 million versus the previous corresponding quarter’s loss of RM21.9 million and its oleochemical division posted a profit of RM85.1 million against the loss of RM26.1 million previously.

Its property development business posted a rise in profit to RM8.3 million against the previously reported profit of RM2.5 million.

The Perak-based plantations segment has reported a 43.6% reduction in the current quarter’s revenue to RM127.8 million on the back of the crude palm oil and palm kernel oil selling prices, as well as negative contributions from processing and trading operations.

The group recorded a revenue of RM4.33 billion for the period. KLK’s share price closed 0.73% higher at RM24.86 yesterday.

Meanwhile, TH Plantations Bhd (THP) CEO and ED Datuk Seri Zainal Azwar Zainal Aminuddin (picture) has been given garden leave commencing from Aug 14, 2018, until further notice.

“During his absence, Mohamed Azman Shah Ishak, the CFO of THP, who is also a principal officer, will assume the day-to-day management of THP and its subsidiaries,” the company noted in an exchange filing yesterday.

The 59-year-old Zainal Azwar joined THP as a senior agronomist in 1998 and was subsequently appointed as the head of operations (overseas) in 2003, which he held until January 2009.

Prior to his appointment as the company’s CEO in July 2009, he was the deputy MD from February 2007 until June 2009.

He was then appointed as the company’s ED on Sept 1, 2009.