IOI Corp Bhd's share price jumped 11 sen or 2.83% to RM4 in Bursa Malaysia's trading session today as the company reported an increase in net profit in the second quarter.
The oil palm plantation company's profit increased to RM1.39 billion in the second quarter ended June 30, 2021 from RM600.9 million achieved last year.
In addition, the company's revenue was seen to have jumped to RM11.25 billion from RM7.8 billion and IOI Corp has also announced an interim dividend of six sen per share.
As at 12.29pm, IOI Corp's share price was up 2.06% or 7 sen to RM3.97.
Judging by the reported assessments, the group’s better performance was a contribution from higher output from all segments.
Among the outstanding was the plantation segment which hit a record profit of RM1.21 billion or 72% better than the RM701.5 million recorded in financial year 2020.
Profit in the resource -based manufacturing segment also jumped by 73% to RM668.0 million from RM385.1 million.
MIDF stated that the upstream segment of the group will continue to shine a deck as crude palm oil (CPO) prices are expected to remain strong above the RM3,000 per metric tonne level.
He added that it also predicted the performance of associate company Bunge Loders Croklaan Group BV to improve in the next quarter given the reopening of economic activity as well as higher demand in North America and Europe.
In conclusion, IOI Corp sees the overall financial performance in the new financial year as more positive supported by the strong performance of the plantation segment.
