KUALA LUMPUR: IOI Corporation Bhd's net profit increased by 2.5 per cent to RM411.2 million in the third quarter (Q3) ended March 31, 2022, from the RM401.3 million recorded in the same quarter a year ago.
In a filing to Bursa Malaysia today, the company said this was mainly due to a higher contribution from its plantation segment.
The plantation segment's profit for Q3 of RM518.5 million was 179 per cent higher than the profit for Q3 FY21 of RM185.9 million due to higher crude palm oil (CPO) and palm kernel (PK) prices realised.
Average CPO and PK prices realised for Q3 FY22 were RM5,604 per tonne and RM4,588 per tonne, respectively.
This was higher than CPO and PK prices of RM3,211 per tonne and 2,616 per tonne in Q3 FY21.
IOI Corp's revenue in Q3 increased by 43.3 per cent to RM4.09 billion from RM2.86 billion.
For the nine months, IOI Corp's net profit increased 14.4 per cent to RM1.18 billion from RM1.03 billion, while revenue increased 51.9 per cent to RM11.84 billion from RM7.79 billion.
The company foresees the CPO price to remain strong in the near term due to the disruption in the supply of sunflower oil arising from the war in Ukraine and several palm oil export restriction policies announced by the Indonesian government.
It added that the severe labour shortage in Malaysia would also elevate this.
"For our plantation segment, CPO production is expected to increase in Q4 FY22 according to the seasonal trend.
"With the anticipated strong CPO price, we expect the plantation segment to perform well in Q4 FY22," it said.
IOI Corp expects the financial performance for Q4 to be good on the back of strong performance from the plantation segment and the oleochemical sub-segment.