KUALA LUMPUR (Aug 17): Batu Kawan Bhd’s third quarter net profit grew 12.7% to RM148.4 million or 36.58 sen per share, from RM131.6 million or 32.28 sen per share a year ago, due to better performance in its plantation and manufacturing segments.

Revenue for the quarter ended June 30, 2016 (3QFY16) went up 11.11% to RM4.04 billion, from RM3.6 billion in 3QFY15, it told Bursa Malaysia in a filing today.

The group did not declare any dividend.

For its plantation segment, Batu Kawan said profit rose 12% to RM211.6 million, from RM189.46 million, due to higher commodity prices and net unrealised foreign exchange gain.

The manufacturing segment’s profit jumped 80.4% to RM140.59 million, from RM77.91 million, on the back of a 21% rise in revenue to RM2.05 billion (3QFY15: RM1.69 billion), thanks to increased sales volumes.

Within it, the oleochemical division’s profit improved to RM99.47 million (3QFY15: RM56.91 million), while the chemicals division posted a profit of RM37.23 million (3QFY15: RM17.93 million).

Batu Kawan said its property development business registered a 33.9% lower profit at RM5.13 million, compared with RM7.76 million previously, due to a slowdown in the property market. Revenue fell 16% to RM24.2 million, from RM28.98 million.

Meanwhile, for the nine months ended June 30, 2016 (9MFY16), Batu Kawan’s net profit soared 70.6% to RM630.4 million or 155.33 sen per share, from RM369.5 million or 90.59 sen per share in 9MFY15.

BKB said while the plantations segment reported a profit of RM421.3 million versus RM202.7 million in 9MFY15 (due to higher contributions from processing operations), estate operations profit was lower as a result of lower fresh fruit bunch (FFB) production and higher crude palm oil (CPO) production cost.

The group said its plantation segment’s performance for FY16 is expected to be satisfactory, in view of current palm oil prices remaining resilient and the anticipated recovery of FFB crop production.

“Notwithstanding the current difficult market conditions, the group anticipates its oleochemical division’s profit for FY16 to be favourable, with increased capacities from plant expansions coming fully on-stream, together with operational efficiency and productivity improvements.

“As for the chemicals division, profit from the chlor-alkali business is projected to be satisfactory, whilst the sulphuric acid business remains challenging, due to competition from imports,” it said.

Batu Kawan’s share price fell four sen or 0.22% to RM17.96 today, for a market capitalisation of RM7.27 billion.