The planter did not declare any dividend for the quarter despite recording an EPS of 58 sen for the quarter

by ANIS HAZIM / Pic by TMR GRAPHIC

KUALA Lumpur Kepong Bhd (KLK) net profit for the fourth quarter ended Sept 30, 2021 (4Q21), rose to RM625.8 million from RM208.82 million in 4Q20 on the back of improved prices and sales.

In a filing to Bursa Malaysia yesterday, KLK stated that its revenue increased to RM5.93 billion compared to RM4 billion a year earlier.

Earnings per share (EPS) for the 4Q was 58 sen but the planter did not declare a dividend for the quarter but stated that the directors will recommend the payment of a final dividend at a later date.

KLK’s plantation profit rose threefold to RM585.6 million in the quarter from RM192.4 million in 4Q20 due to an improvement in crude palm oil (CPO) and palm kernel selling prices, higher CPO sales volume, profit contribution from its newly acquired subsidiary, IJM Plantations Bhd, as well as better profit contribution from processing and trading operations.

For the full financial year (FY21), KLK’s net profit soared to RM2.26 billion versus RM772.6 million in FY20 while revenue increased to RM19.92 billion in FY21 from RM15.6 billion in FY20.

On its current year prospects, KLK said the performance of the plantation segment is expected to be better in FY22 on the back of strong prevailing CPO prices and profit contribution from the newly acquired plantation subsidiaries.

“Despite challenges from volatile raw material price movements and logistic issues caused by the Covid-19 pandemic, the oleochemical division expects to maintain its performance in FY22,” it stated.

Overall, the group is expected to sustain its strong performance going into FY22.

KLK’s share closed 54 sen or 2.6% lower at RM20.26 yesterday, valuing the group at RM 21.9 billion.