KUALA LUMPUR (Feb 6): Sabah-based NPC Resources Bhd has proposed to divest 7,505 acres (3,037 hectares) of oil palm land in the state, held though three subsidiaries, for RM165.11 million.

The group plans to sell the land located in the Labuk-Sugut district to Tamaco Plantation Sdn Bhd, a private company based in Lahad Datu.

NPC, in a bourse filing on Tuesday, did not disclose how it is going to utilise the proceeds, the rationale behind the divestment, or the shareholders of Tamaco.

The group said its wholly owned unit Berkat Setia Sdn Bhd will be selling six parcels of land measuring 251.324 acres for RM5.53 million, while 70%-owned Bonus Indah Sdn Bhd will be divesting three parcel of land measuring 4,954 acres for RM108.99 million.

Additionally, wholly owned Kian Merculaba Sdn Bhd is disposing of four parcels of land measuring 2,299.75 acres for RM50.59 million.

For the cumulative nine-month period ended Sept 30, 2023, NPC recorded a net profit of RM14.54 million, versus a net loss of RM3.78 million for the previous corresponding period, while revenue grew 10% to RM337.11 million from RM305.51 million.

NPC attributed the improvement to higher crude palm oil and palm kernel sales volumes, coupled with better fresh fruit bunch production on its land in Sabah and Kalimantan, Indonesia.

NPC closed unchanged at RM1.80 a share on Tuesday, valuing the group at RM216 million.