Its revenue dropped 7.5% to RM2.46 billion from RM2.66 billion for the same period a year ago, said the global integrated and sustainable palm oil player in a filing with Bursa Malaysia.

“The resource-based manufacturing segment’s profit was RM44.4 million compared to RM50.8 million for Q3 FY2023, mainly due to lower margins from the oleochemical sub-segment as well as lower sales volume from refining sub-segment, mitigated by higher share of associates’ results,” it said.

However, the plantation segment’s profit was 11% higher at RM244.9 million from RM221.2 million previously.

For the nine months period, IOI Corp’s net profit was lower at RM762.5 million from RM1.08 billion a year ago, while revenue decreased to RM7.06 billion from RM9.63 billion previously.

On prospects, IOI Corp said it expects the plantation segment to perform well in the fourth quarter of FY2024 (Q4 2024) on rising fresh fruit bunches (FFB) production and continuing labour productivity improvement, as well as a higher oil extraction rate.

As for the refinery and commodity marketing sub-segment, IOI Corp has anticipated the current low or negative refining margins to persist.

“Overcapacity of refineries in Indonesia and the raw material price advantage from their country’s crude palm oil export duty policy are largely the causes for these low or negative refining margins,” it said.

Overall, the group has forecasted that its operating and financial performance for Q4 FY2024 will be satisfactory.

At the close of trading, IOI Corp’s share price was unchanged at RM3.98, giving the group a market capitalisation of RM25.02 billion.