TSH Resources Q2 earnings double to nearly RM28m - Business News | The Star Online

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TSH Resources Q2 earnings double to nearly RM28m


KUALA LUMPUR: Plantations company TSH Resources Bhd saw its earnings double in the second quarter ended June 30, 2017 mainly due to the higher average crude palm oil (CPO) price and increase in fresh fruit bunch (FFB) production. 

It reported on Thursday its earnings rose to RM27.67mil from RM13.84mil a year ago. Its revenue rose 21.5% to RM258.23mil from RM212.47mil a year ago. Its earnings per share were 2.04 sen compared with 1.03 sen.

TSH said in line with the higher revenue, core profit increased by 46% to RM38.3mil from RM26.1mila year ago.

Its pre-tax profit rose to RM41.5mil from RM16.7mil mainly due to the higher core profit. It also recorded  net foreign exchange gain of RM3.3mil compared to a net foreign exchange loss of RM9.4mil a year ago.

TSH also said the revenue was higher in the Q2 from RM288.5mil in Q1 while core operating profit was lower at RM38.3mi versus RM41.1mil. 

“The decline in revenue and core operating profit was mainly due to the drop in average CPO price from RM2,985 per tonne in Q1 to RM2,656 per tonne in Q2,” it said.
 
TSH also said lower net foreign exchange gain of RM3.3mil in Q2 versus RM7.8mil in Q1 further resulted in a lower profit before tax of RM41.5mil from RM48.9mil in Q1.

In the first half, its earnings dipped 10% to RM61.64mil from RTM68.56mil in the previous corresponding period. Its revenue rose 31.8% to RM546.73mil from RM414.74mil a year ago.

On the outlook, TSH expects palm oil yields to extend its rebound in the second half of the year as the impact of El Nino has waned. 

“Production should also improve due to better age profile as more oil palm trees reach optimum yield and with more planted areas coming into maturity and harvesting stage. 

“The Board is optimistic on the long term prospect of the palm oil industry due to the higher per capital income, many health qualities of palm oil and population growth, which will drive greater demand,” it said.

Palm products segment which accounts for more than 85% of the revenue and profit for the group will remain a significant contributor to group profit. 

“Management will continue its focus on the productivity and efficiency improvement to reduce unit cost of production in 2017,” it said. 

Plantations

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