KUALA LUMPUR, Malaysia--Malaysian palm oil company Kuala Lumpur Kepong Bhd. (2445.KU) said its fiscal third-quarter net profit dropped 55.5% mainly due to weaker performance at its oleochemical and property businesses, in addition to an impairment on an investment in China.
Net profit for the April-June period declined to 112.76 million ringgit ($26.26 million) from MYR253.39 million a year earlier, according to a filing with the stock exchange.
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Revenue, however, climbed 24.2% to MYR4.87 billion, due in large part to improved selling prices of crude palm oil and palm kernel.
Kuala Lumpur Kepong said it expects a higher plantations profit for the current financial year ending September in view of the prevailing crude palm oil price and the forecast of higher fresh fruit bunches production in the coming months.
The company said the oleochemical division, however, will report a lower profit for the current financial year in view of the writedown in the value of stocks and the challenging and competitive market environment.
"Overall, the group expects a satisfactory profit for financial year 2017," Kuala Lumpur Kepong said.
Shares of the company ended Tuesday 0.08% lower at MYR24.68 a share before the earnings release.
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(END) Dow Jones Newswires
August 15, 2017 05:42 ET (09:42 GMT)