Malaysia’s second largest palm oil producer IOI Corp Bhd (1961) saw its fourth-quarter profit rise by 12 per cent, mainly due to lower tax charges.

IOI Corp’s full-year profit doubled to RM2.04 billion on foreign exchange gains, no further property losses in Singapore and better palm oil prices.

Net profit for the quarter to June 30 2010 was RM547.05 million, a slight improvement from RM487.07 million in the same quarter a year ago. Revenue, however, slid 2 per cent to RM3.06 billion.

IOI Corp, controlled by the family of Tan Sri Lee Shin Cheng, expressed caution for the current year ending June 30 2011.
“The global economic growth is starting to show signs of slowing down. It will be a challenging year ahead,” the group said in its filing to Bursa Malaysia yesterday.

IOI Corp only paid RM77.12 million in tax charges compared with RM111.95 million during the fourth quarter. It was lower because the group posted more non-taxable income and factored in previously unrecognised tax losses.

In the year ended June 2010, IOI said its 80-odd estates produced 732,275 tonnes of palm oil output, 6 per cent less than 777,310 tonnes harvested in the previous year.

In the quarter under review, the group’s plantation profit was 6 per cent higher despite the lower harvest. Higher palm oil pricing in the international market had helped boost its bottom line.

“Average palm oil prices realised for the fourth quarter is RM2,504 per tonne compared with RM2,455 per tonne for the fourth quarter of 2009,” it said.

IOI Corp’s operating profit in its oleochemical business fell 28 per cent to RM135.7 million.

Its property business also reported a 28 per cent drop in operating profit to RM190.8 million due to lower appreciating value in investment properties.

Total dividend for the financial year just ended amounted to 17 sen per unit of 10 sen share each. Source: Business Times by Ooi Tee Ching

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