KUALA LUMPUR (Nov 29): QL Resources Bhd’s net profit for the second quarter ended Sept 30, 2021 (2QFY22) fell 34.49% to RM45.94 million from RM70.13 million a year ago, amid higher depreciation and amortisation, and lower share of profit from associates.

The group registered a 16% rise in depreciation and amortisation to RM57.72 million from RM49.77 million, while its share of profit from associates dropped 95% to RM180,000 from RM3.48 million, its bourse filing on Monday showed.

The group reported a lower net earnings per share of 1.89 sen versus 2.88 sen previously. No dividends were declared.

The slide in earnings came despite revenue rising 15.77% to RM1.25 billion from RM1.08 billion, on stronger contribution from its palm oil and clean energy (POCE) segment, as well as its integrated livestock farming (ILF) business, which offset lower contribution from its marine product manufacturing (MPM) business, its bourse filings on Monday showed.

POCE's sales more than doubled to RM127.84 million from RM57.62 million previously, while ILF's revenue jumped 22% to RM835.85 million from RM683.15 million. The jump in POCE sales came from the consolidation of Boilermech's sales after it became a subsidiary of the group in the fourth quarter of FY21, and significantly higher crude palm oil selling prices. ILF's improved sales were mainly due to high feed raw material trading price and improved egg price and volume.

MPM revenue, on the other hand, dropped 16% to RM284.36 million from RM337.32 million on lower sales volume across all MPM activities due to continued low fish landing cycle and disruption in fishing activities from the shortage of foreign fishing crew amid the Covid-19 lockdown.

Compared to the preceding quarter of 1QFY22, QL's net profit rose about 9% from RM42.19 million, while revenue rose 1.6% from RM1.23 billion.

For the six-month period ended Sept 30, the group’s net profit declined 27.16% to RM88.14 million from RM121 million in the corresponding period last year, although revenue rose 20.76% to RM2.47 billion from RM2.05 billion, as operating profit dropped amid lower contributions from its MPM and ILF businesses, which could not be offset entirely by an improvement in earnings from POCE.

Moving forward, the group said its management continues to be positive about a significant recovery in overall business performance for the second half of FY22 (2HFY22), given that the country has moved into National Recovery Plan Phase 4 with the full reopening of all economic activities.

Shares in QL settled six sen or 1.32% lower at RM4.47, valuing the company at RM10.88 billion.