KLK posts lower pre-tax profit in Q2
KUALA LUMPUR, May 24 — Kuala Lumpur Kepong Bhd's (KLK) pre-tax profit for the second quarter ended March 31, 2012, fell to RM311.6 million from RM503.83 million in the same quarter last year.
However, revenue edged up to RM2.62 billion for the period from RM2.37 billion previously, KLK said in a filing to Bursa Malaysia today.
"The higher revenue was due to better performance in the oleochemical division, benefitting from erosion of margins due to the huge export duty advantage enjoyed by the Indonesian chemicals players," it said.
Despite the current volatility of palm oil price due to the uncertainties in the global economic environment and the unresolved sovereign debt crisis in the Eurozone, it should continue to be well supported by strong fundamentals and tight supply in competing oilseed crops.
With the expectation of a higher production during the second half, the group can expect reasonably good profit from plantations for the current financial year, it said.
KLK has declared an interim single tier dividend of 15 sen per share for the financial year ended September 30, 2012, payable on August 8, 2012. — Bernama