Planters in for better earnings on higher palm oil price

Kenanga Research, in its latest report, said planters with high plantations exposure in Peninsular Malaysia such as Sime Darby Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd (KLK), Felda Global Ventures Holdings Bhd (FGV) and United Malacca Bhd could see higher-than-average production growth trends

PETALING JAYA: Most planters’ second quarter results (Q2 2017) to be released this week are expected to record further improvement, bouyed by higher crude palm oil (CPO) production and prices.

According to analysts, plantation companies will likely deliver stronger earnings year-on-year (y-o-y), given a 6% increase in CPO price to RM2,747 per tonne and 12% rise to 4.72mil tonnes in production after the severe El-Nino drought episode.