Lang
KUALA LUMPUR: IOI Corporation Bhd has forecast a strong financial performance for the financial year ending June 30, 2027, with the Malaysian plantation group pointing to sustained crude palm oil (CPO) prices as the primary driver of its results amid concerns over El Niño and tight global vegetable oil supplies.
The group said CPO prices have risen significantly since mid-August, trading in a range of RM4,800 to RM5,000 per tonne, and management expects the strong price environment to persist well into FY27.
IOI attributed the bullish outlook to concerns over the severity of El Niño affecting oil palm-growing areas in Malaysia and Indonesia, with fresh fruit bunch (FFB) production expected to continue feeling the lagged effects of drought conditions.
On the demand side, the company highlighted favorable biodiesel economics, supported by elevated crude oil prices and constrained crude oil supplies linked to ongoing conflicts in the Middle East. These dynamics are expected to provide additional underpinning for CPO prices and reinforce the group's earnings outlook for the coming year.
Source: KLSE Screener