14-08-2007: High palm oil prices boost Kretam 2Q07 net profit

14-08-2007: High palm oil prices boost Kretam 2Q07 net profit
by Ellina Badri
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KUALA LUMPUR: Kretam Holdings Bhd posted a RM13 million net profit in the second quarter ended June 30, 2007 versus a net loss of RM1.3 million a year earlier, on the back of a 103.4% increase in
revenue to RM30 million from RM14.7 million.

In its unaudited quarterly report yesterday, Kretam said its performance for the period was boosted by high palm oil prices and improved contributions from its newly-matured oil palm areas in the Tawau district.

Additionally, results from the group’s stockbroking unit were boosted by improved trading volumes in light of the recent bullish stock market sentiment, and also from the sale of quoted securities received on the demutualisation of Bursa Malaysia, it said.

For the six months to June 30, its net profit and revenue stood at RM23.4 million versus a loss of RM89,000 a year earlier and RM55.3 million versus RM30 million a year earlier, respectively.

Kretam said its plantations were expected to perform well in 2007 based on bullish expectations of palm oil prices.

Revenue from the group’s new oil palm estates in the Tawau district was expected to increase progressively as more areas attained maturity, it added.