Kencana Agri says net profit after tax jumped 328% from US$0.5 million ($0.65 million) to US$2.2 million for the third quarter (3Q2010) ended 30 September 2010.

For 3Q, Kencana reported revenue of US$30.7 million compared to US$34.0 million in 3Q2009 as a result of lower sales volume.

However, the group’s operating profit increased by 208% from US$1.6 million to US$4.8 million in 3Q2010 and was supported by higher average selling prices (ASP) of its palm oil products and higher exchange gains.

Kencana’s cash position remains healthy with US$47.9 million in cash and cash equivalents as at 30 September 2010.

Net asset value per share increased to 16.91 US cents as at end September 2010 from 14.40 US cents as at end December 2009.

Henry Maknawi, Chairman & CEO of Kencana, says: “The long-term outlook of palm oil sector continues to be robust on the back of sustained demand from major consumers in China, India and the European Union. We believe that prices of CPO should remain firm for the rest of the year due to uncertainties in the supply of palm oil and other vegetable oils as a result of adverse weather conditions in the major producing areas of the world.”