KUALA LUMPUR (Oct 21): Riverview Rubber Estates Bhd's net profit for the third quarter ended Sept 30, 2020 (3QFY20) more than doubled to RM3.7 million, from RM1.8 million a year earlier, on higher oil palm prices.

In a bourse filing, the group said revenue for 3QFY20 jumped 60.7% to RM10.65 million from RM6.63 million previously.

On a quarter-on-quarter basis, the group's net profit was up 55.26% from RM2.39 million in the preceding quarter, while revenue was up 22.01% at RM8.73 million.

Riverview said the higher revenue and net profit were the result of higher selling prices for fresh fruit bunch (FFB) during the quarter.

Meanwhile, the cumulative net profit for the nine months ended Sept 30, 2020 skyrocketed to RM7.38 million from RM1.51 million in the previous corresponding period. Revenue for the period rose to RM27.03 million from RM19.2 million.

On its prospects, the group said its plantation division was impacted by changes in FFB and crude palm oil prices.

"The Covid-19 pandemic may result in a change in the supply and demand of vegetable oils. The group has considered the impact of Covid-19 and the Movement Control Order on its operations and financials and is of the opinion that the operating results are expected to remain satisfactory and that the cash flow position is adequate to meet the group's requirements," it added.

Meanwhile, the group said its real estate segment is expected to perform at satisfactory levels.

Shares in Riverview were last traded at RM2.66, valuing the group at RM172.5 million.