Kim Loong Resources Bhd saw over a twofold increase in net profit to RM28.84 million for its third quarter ended Oct 31, 2020 compared to RM13.79 million a year ago on the back of higher yield as well as an increase in fresh fruit bunches prices and crude palm oil prices.On its prospect for the remaining quarter, Kim Loong acknowledged that the Covid-19 pandemic has caused unprecedented volatility in crude oil commodity price.
With the recent unexpected sharp increase in CPO commodity price to the current level of above RM3,600 per metric tonne, it holds the view that the its plantation operations will continue to benefit significantly from high CPO price despite a gradual drop in FFB production is expected in the fourth quarter due to seasonal factor on cropping trend.
Given Kim Loong’s performance in the first three quarters of the year, it foresees the performance for FY2021 to be good. For the first three quarters of the year, the group’s net profit surged 219.3% to RM84.90 million from RM38.71 million reported in the corresponding period. Revenue for the period stood at RM717.94 million, a 44% increase from RM498.59 million.
Kim Loong declared a special dividend of 3 sen per share for the financial year ending Jan 31, 2020 to be paid on Feb 22, 2021.