By Chester Tay
Kuala Lumpur Kepong Bhd.'s second-quarter net profit plunged from a year earlier, due to foreign-exchange losses arising from a weaker Indonesian rupiah against the U.S. dollar and the Malaysian ringgit as investors flocked to safe-haven assets amid the Covid-19 crisis.
Net profit slumped 80% to 27.9 million ringgit ($6.4 million), while revenue declined 3.5% to MYR3.81 billion, the plantation group said Wednesday.
First-half net profit declined 50% to MYR195.1 million, while revenue fell 1.8% to MYR7.88 billion.
Kuala Lumpur Kepong said crude palm oil prices are anticipated to remain under pressure in the second half due to economic uncertainties resulting from the pandemic.
While the company expects profit from the plantation segment to remains "satisfactory" for 2020, it cautioned that the oleochemical division may face a challenging operating environment.
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