Higher 3Q profit for IJM Corp and plantation unit

KUALA LUMPUR (Feb 23): Both IJM Corp Bhd and its unit IJM Plantations Bhd posted higher earnings for 3QFY12 ended Dec 31, 2011.

IJM Corp's 3QFY12 net profit rose 5.7% to RM135.2 million from RM127.9 million in the previous corresponding quarter to higher contribution from its construction, industry and plantation divisions.  

For the nine-month period, IJM Corp's net profit fell marginally to RM325 million from RM328.8 million a year ago while revenue rose 22% to RM3.3 billion. Basic earnings per share (EPS) was 23.7 sen versus 24.48 sen a year ago.

In its filing with Bursa Malaysia, the group said the three divisions mentioned earlier recorded profit growth during the quarter but its property division was affected by the non-recurrence of a RM63 million capital gain in the previous year, while its infrastructure division experienced unrealised foreign exchange losses of RM34 million.

For its construction business, IJM Corp said revenue rose 107% for the latest quarter due to acceleration of the Grand Hyatt, Batu Kawan and Besraya Eastern Extension projects.

It added that its property division's revenue grew 14.8% from increased construction activities. However, the division recorded lower profit due to a RM63 million capital gain in the corresponding quarter from the sale of subsidiary Delta Awana Sdn Bhd.

"Excluding this capital gain, the current quarter profit would have climbed 69.5% backed by higher project margins and lower financing cost," it said.

On its future prospects, the group said its construction division's performance is expected to gain momentum.

"Our order book has been boosted by the recent procurement of Package V5 of the Sungei Buloh-Kajang My Rapid Transit (MRT) line and replenishment prospects remain encouraging with potential contract spin-offs from the West Coast Expressway project," it said, added that its property division has an unbilled sales of RM1 billion.

It noted that while Malaysian toll and port operations would continue to provide steady revenue streams, the infrastructure division performance would be dampened by initial higher finance costs and amortisation of new tolls in India.

For the same quarter, IJM Plantations's net profit grew 22% to RM53.89 million from RM44.05 million. Revenue fell 8.7% to RM146.4 million due to lower sales volume of crude palm oil (CPO) and palm kernel oil (PKO). EPS came in at 6.72 sen versus 5.5 sen a year ago.

"The average realised CPO price was RM2,965 per tonne, an increase from RM2,914 per tonne in the corresponding quarter of the preceding year. However, the average price of PKO decreased to RM3,488 per tonne from RM4,728 per tonne," it said.

For the nine-month period, IJM Plantations' net profit grew 23.9% to RM150.25 million while revenue grew 11.9% to RM455.7 million. Basic EPS was 18.74 sen versus 15.13 sen a year ago.