20/11/2012 (4-Traders) - IOI Corp. Bhd. (1961.KU), Malaysia's second-largest palm oil producer by acreage after Sime Darby Bhd., said Monday its fiscal first-quarter net profit more than doubled on foreign exchange gains and higher contributions from its non-plantation businesses.

Net profit for the three months ended Sept. 30 was 604.3 million ringgit ($197 million), compared with MYR258.1 million during the same quarter a year earlier, the company said in a statement to the Malaysian stock exchange. The bottom line was boosted by a translation gain of MYR259.2 million on foreign currency-denominated borrowings.

Revenue, however, fell 19% on-year to MYR3.37 billion from MYR4.15 billion.

IOI Corp. said its plantation business recorded lower production and weaker prices with crude palm oil prices averaging MYR2,941 a ton, versus MYR3,149 a year ago.

"However, the segment is expected to still perform well in the medium term with resilient demand from the food sector, price competitiveness over other edible oils, higher consumption in emerging market and expected recovery in palm oil prices beginning early 2013," IOI said.

Apart from plantation and its related downstream activities, the company also develop properties. IOI expects stronger property sales with "continued resilient performance" of the mass market segment, although its high-end segment is still affected by global uncertainty and measures by the Singapore government to cool the market.