KUALA LUMPUR: TH Plantations Bhd earnings fell 74.6% to RM5.14mil in the second quarter ended June 30, 2015 from RM20.24mil a year ago due to the adverse weather conditions and lower crude palm oil (CPO) prices.
TH Plantations, which is majority owned by the pilgrimage fund Tabung Haji, said on Friday its revenue fell 16.9% to RM110.18mil from RM132.59mil. Earnings per share were 0.58 sen compared with 2.29 sen.
In the first half ended June 30 2015, its earnings fell 54.8% to RM11.72mil from RM25.95mil in the previous corresponding period. Revenue also declined, down 25% to RM192.48mil from RM256.83mil.
“The prolonged dry weather experienced in the first half of last year and the adverse wet weather at the end of 2014 have brought upon deeper effects on production than initially expected, thereby impacting the overall earnings of the group,” said TH Plantations.
It added group production was impacted by the large proportion of younger estates, with 33% of its with oil palm planted area being first and second-year harvests, which yield lower fresh fruit bunches (FFB) compared to prime mature estates.
“Although the group’s FFB production improved in 2Q2015, increasing 2% from the corresponding quarter last year to 189,610 tonnes, its 1H2015 FFB production declined by 9% from the same period last year to 327,598 tonnes.
“The group’s 2Q15 and 1H2015 crude palm oil (CPO) production increased by 9% to 41,604 metric tonnes and declined by 7% to 72,656 tonnes, respectively.
The group’s earning was also impacted by lower commodity prices. Its average CPO realised prices for 2Q15 was RM2,092 per metric tonne and RM2,121 per metric tonne for 1H2015, a decline of 17% and 16% respectively compared to their corresponding periods last year,” it added.
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