KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd (MKHOP), an upstream oil palm plantation company based in East Kalimantan, Indonesia, reported a stellar net profit of RM39.94 million on the back of revenue of RM102.65 million for its first quarter ended 31 Dec, 2024.
Earnings per share (EPS) stood at 3.14 sen for the quarter.
The stellar first quarter results for financial year ending Sept 30, 2025, in comparison, made up 62.2% of MKHOP’s full year results for its financial year ended Sept 30,2024 (FY24).
For context, MKHOP delivered net profit of RM64.21 million in FY24.
There were no comparative quarterly figures on a quarterly basis, as the company was only listed on the main market of Bursa Malaysia Securities Bhd on April 30, 2024.
In a statement yesterday, the company said the good results were driven by a combination of higher crude palm oil (CPO) and palm kernel (PK) selling prices, which have been steadily trending up and higher CPO and PK quantity sold compared to preceding quarter.
For the first quarter, the average CPO/MT net of Indonesia’s export duty and levy, and PK/MT price for MKHOP stood at RM3,848 an RM2,659 respectively. It also recorded total production of fresh fruit bunches of 113,377 MT for this period.
To date, MKHOP has a total land area of 18,205 ha, with a planted and matured area of 17,009ha.
MKHOP maintains a strong financial position with negligible borrowings. It’s cash pile increased to RM236.15 million for the period, from RM225.22 million in the previous quarter.
Separately, MKHOP is in the midst of conducting its due diligence exercise for its planned land acquisitions. The relevant announcements will be made in stages in the near future.
When asked about the upcoming second quarter results, chairman Tan Sri Alex Chen Kooi Chiew @ Cheng Ngi Chong (pic) is confident of satisfactory results with the favourable CPO price.
The group’s prospect for financial year ending Sept 30, 2025 remains
well-supported with strong market demand for CPO, which had been trading at approximately RM3,800/MT to RM4,000/MT (nett of export levy and duty) in Indonesia.
Given the above, the board of directors expected the group to achieve satisfactory results for the financial year ending Sept 30, 2025.
