18/02/2016 (Bernama) - Batu Kawan Bhd's pre-tax profit for the first quarter ended Dec 31, 2015, surged to RM938.66 million from RM318.27 million recorded in the same quarter last year.

Revenue rose to RM4.45 billion from RM3.21 billion previously, the company said in a filing to Bursa Malaysia Wednesday.

It said the higher profit was derived after accounting for a surplus of RM485.69 million from the sale of plantation land to an associate.

The group's plantations segment profit rose 12 per cent to RM276.92 million compared to the corresponding quarter due to improved contributions from refineries and kernel crushing plants as well as higher selling prices for palm kernel and rubber.

"The group's plantations performance for financial year 2016 is expected to be challenging in view of the weak economic outlook and ample supply of oilseeds which may impact palm oil prices.

"The group anticipates its oleochemical division's profit for financial year 2016 to be favourable, with additional capacities from key expansion plants coming fully on-stream together with the continuous drive for operational efficiency and productivity enhancement," it said.