KUALA LUMPUR: Batu Kawan Bhd’s net profit plunged 52.34 per cent to RM50.83 million in the third-quarter (Q3) ended June 30, 2019, from RM106.66 million in the same period a year ago.
In an exchange filing today, the company said poor earnings were due to lower contribution from the plantation and property segments.
Its Q3 revenue fell per cent to RM3.82 billion from RM4.47 billion, dragged by lower prevailing crude palm oil (CPO) and palm kernel prices (PK).
For the first three quarters of year ending September 30, 2019, its net profit reduced 7.50 per cent to RM266.80 million from RM288.43 million, while revenue decreased 17.16 per cent to RM12.12 billion from RM14.63 billion a year ago.
The group’s plantation division profit for the year ending September 30, 2019 will be lower than the preceding year’s in view of low prevailing CPO and PK prices.
It said the group’s performance for the oleochemical division should be sustained with better margins from lower raw material prices.
As for the group’s industrial chemical division, profits from both chlor-alkali and sulphuric acid businesses are projected to be satisfactory despite higher energy and raw material costs.