KUALA LUMPUR: Plantation firm Kuala Lumpur Kepong Bhd
(KLK) net profit climbed to RM490mil in the second quarter ended March 31 as strong demand and tight supplies pushed up palm oil prices higher.
Profits from its plantation business jumped 90% to RM278mil, while its manufacturing division contributed RM197mil.
Favourable exchange rates and sales of land contributed RM170mil.
The company, in a filing with Bursa Malaysia today, said the average selling price (ASP) of crude palm oil rose 16.5% during the quarter to RM2,997 a tonne ex-mill. Meanwhile, palm kernel ASP shot up 47% to RM2,259 a tonne ex-mill.
The benchmark third-month CPO futures contract for August delivery was traded at RM4,288 a tonne ahead of the closing bell on Wednesday.
“Plantation profit in FY21 will be substantially higher as current CPO prices remain buoyant, underpinned by tight palm oil inventories and global edible oil supplies,” KLK said.
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