Keck Seng Benefits from Higher Third Quarter Thanks to Better Palm Oil Refining Margins and Better Hotel Occupancy

KUALA LUMPUR (November 22): Net profit of palm oil producer Keck Seng (Malaysia) Bhd increased 327% to RM17.56 million for the third quarter ended September 30, 2021 (3QFY21), from 3 , 84 million RM in the immediate previous quarter, on better refining margins.

The group also attributed the rise in profits to lower losses in its hotel division due to improving occupancy rates.

Revenue increased 5.35% to RM329.25 million from RM 312.52 million in 2TFY21, driven by an increase in the volume and sale price of refined oil, coupled with the improvement the contribution of the hotel segment.

However, its property development division underperformed due to a lower number of units sold as well as the absence of one-off capital gains on the sale of industrial land.

Year-over-year, Keck Seng has returned to the dark after a net loss of RM 11.45 million in the third quarter of fiscal 2020, thanks to a better performance from the manufacturing and hospitality division, while its equity investment division also posted a fair decline. loss of value.

Quarterly earnings per share amounted to 4.89 sen, compared to a 3.19 sen loss per share in 3QFY20.

Revenue increased 54.35% to RM329.25 million from RM 213.31 million a year ago, mainly due to the higher selling price of refined oil.

For the nine-month period ended September 30, 2021, Keck Seng reported net profit of RM32.23 million or 8.97 sen per share, compared with a net loss of RM 21 million or 5.84 sen per share. at the same time last year.

Nine-month revenue increased 45.27% to RM 893.77 million from RM 615.25 million.

This is mainly due to improvements in the manufacturing and plantation divisions, hotels, as well as equity investments, while the contribution from the real estate segment was lower.

Regarding the outlook, Keck Seng expects a stable performance of the FY21 plantation segment on higher prices, offset by a lower production volume, the latter affecting its manufacturing segment in 4QFY21.

In the real estate segment, it sees lower occupancy rates, as it will also continue to market its ongoing real estate projects in Johor.

On the hotel division, Keck Seng spoke of the uncertainties surrounding the pandemic.

“The recovery of our hotels is expected to be slow and gradual, with most hotels not anticipating standardization for two to three years,” he said.

Keck Seng’s shares traded two sen or 0.58% lower at RM 3.43, giving the company a market cap of RM 1.24 billion.

Comments are closed.