KLK Posts RM1.34 Bln Net Loss In 3Q On RM1.62 Bln Impairment Loss

KUALA LUMPUR, Aug 24 (Bernama) -- Kuala Lumpur Kepong Bhd (KLK) posted a net loss of RM1.34 billion in the third quarter of 2026 compared with a net profit of RM346.59 million in the same quarter a year ago after accounting for a RM1.62 billion impairment loss on investment in an overseas associate, United Kingdom-listed Synthomer plc.

Its revenue rose to RM7.05 billion from RM6.43 billion in the same quarter last year.

In a filing with Bursa Malaysia, the palm oil producer said the RM1.62 billion non-cash and non-operational accounting adjustment will decisively remove recurring and uncertain drag on KLK’s earnings ahead, with no expected impact on cashflow and dividend outlook.  

KLK said that for the first nine months of financial year ending Sept 30, 2026, it posted a net loss of RM667.96 million from a net profit of RM721.31 million a year ago.

Revenue increased to RM19.95 billion from RM18.71 billion a year ago, mainly supported by improved sales volumes and lower crude palm oil (CPO) production costs, which largely mitigated the impact of lower CPO selling prices.

“Looking ahead, the plantation segment is expected to continue delivering a strong performance, supported by robust production levels and favourable palm product prices, with operating costs expected to remain flat for the financial year,” it said in a different statement.

KLK chief operating officer Lee Jia Zhang said its upstream demonstrated sustained strong yields attributable to focused and effective management practices while the downstream has shown operational and commercial improvements across all operating regions.

“We are optimistic of closing the financial year with a strong performance. To remove the overhang that distorts the group’s continued strong fundamental performance, it is important that we provide certainty and clarity to our stakeholders by the decisive move to impair Synthomer,” he said.

Moving forward, while KLK continue to equity account, Lee said its carrying cost is significantly marked down to RM190 million.

-- BERNAMA