Genting Plantations records 1Q net profit of RM39mil

KUALA LUMPUR: Genting Plantations Bhd’s prospects for the rest of the year will track the performance of its mainstay plantation segment, which is, in turn, dependent principally on the movements in palm products prices and its fresh fruit bunch (FFB) production.

“In the short run, the palm products prices are under pressure as prices of other edible oils namely sunflower and soya oil have been on a declining trend due to better harvest, compounded by downbeat economic prospects in several major economies.

“Nevertheless, palm products prices could still see some support by supply pressure from lower than anticipated cropping in Indonesia and Malaysia, while palm oil inventory levels in both countries have also declined considerably in recent months,” Genting Plantations said in a statement.

Following the year-on-year increase in FFB production, the plantation group expects the growth to extend into the remainder of the year, though at a moderate rate, driven by additional harvesting areas and progression of existing mature areas into higher yielding brackets in Indonesia, barring any weather anomalies.

Meanwhile, the production growth may be constrained by on-going replanting activities in Malaysia.

Genting Plantations said its property segment will continue to offer products which cater to a broader market segment including its upcoming maiden industrial development in Bandar Genting Pura Kencana, taking into consideration the prevailing market sentiments.

Genting Plantations net profit tumbled 66.7% to RM38.8mil in the first quarter ended March 31 (1Q23) compared with RM116.6mil in the corresponding quarter last year.

Revenue rose 10.1% to RM584.25mil against RM530.4mil last year.

The group achieved crude palm oil and palm kernel prices of RM3,585 per tonne and RM1,983 per mt respectively.