MKH Oil Palm (East Kalimantan) Bhd chairman Tan Sri Alex Chen Kooi Chiew
KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd's (MKHOP) prospects for the financial year ending September 30, 2024 (FY24) remain strong, supported by robust market demand for crude palm oil (CPO), which is currently trading at approximately RM3,650 per tonne in Indonesia.
Chairman Tan Sri Alex Chen Kooi Chiew said the group is well positioned to benefit from growth in the global edible oils market and the oil palm industry in Indonesia as there is increasing demand for edible oils and fats globally.
“With our strong cash position, we are also actively on the lookout for new oil palm plantation land in order to grow our landbank and revenues.
“Based on the above, we are optimistic on the group’s future prospects and results for FY24,” Chen said in a statement.
In the third quarter ended June 30, MKHOP posted a net profit of RM16.1mil, or earnings per share of 2.09 sen, bringing its net profit for the first nine months to RM42.6mil, or 5.53 sen per share.
Revenue for the quarter was RM93.3mil, bringing the cumulative total for the first nine months to RM261.6mil.
There were no comparative quarterly figures, as the company was listed on the main market of Bursa Malaysia on April 30.
For the quarter, the average CPO price per tonne stood at RM3,658, while average palm kernel (PK) price per tonne stood at RM1,890.
Separately, on Aug 16, 2024, MKHOP announced to Bursa Malaysia that it is seeking shareholders’ approval at the forthcoming EGM on Sept 10, to purchase not more than 5% of its total number of issued shares at any point in time.
The advantages of this proposal include to stabilise MKHOP’s share price and to enable MKHOP to utilise its surplus financial resources more efficiently resulting in a more efficient capital structure.
