The company told Bursa Malaysia yesterday that revenue for the current quarter improved year-on-year (y-o-y), mainly due to higher fresh fruit bunch (FFB) production from Indonesia, apart from the higher sales of refined palm products.
KUALA LUMPUR: Genting Plantations Bhd
posted a significantly weaker fourth quarter net profit of RM26.14mil compared to RM70.54mil in the same quarter last year on softer palm product prices and lower fresh fruit bunch (FFB) production.
Revenue for the quarter under review fell to RM402.65mil versus RM446.25mil in the comparative quarter.
"The Property and Downstream Manufacturing segments also posted a decline in revenue from projects that were at their early stages of completion and weaker selling prices for refined palm products respectively.
"On the other hand, the Plantation-Indonesia segment’s revenue saw a marginal improvement as its higher FFB production negated the impact of weaker selling prices," said the group in a stock exchange filing.
For the six months period to June 30, 2018, group revenue was RM931.7mil, 10% more than the previous corresponding period due to the higher offtake of refinery products from the downstream manufacturing segment.
However, despite FFB production increasing due to increased harvesting areas and higher yields in Indonesia outpacing the decline in Malaysia, weaker palm product selling prices outweighed the gains.
"The Group achieved lower year-on-year CPO prices of RM2,291/mt and RM2,336/mt in 2Q 2018 and 1H 2018 respectively," it said.
PK prices were also lower compared to the corresponding periods of the previous year, averaging at RM1,723/mt and RM1,908/mt for 2Q 2018 and the year-to-date period respectively.
The group's net profit for the six months period was RM127.12mil, 11% under the 2017 period.
The group said its property segment registered higher property sales in the first half of the year although earnings before interest, tax, depreciation and amortisation (Ebitda) slipped due to lower revenue recognition and lower margin products.
Meanwhile, the biotechnology segment's results remaines stable while the downstream manufacturing segment posted higher Ebitda as its biodiesel and refinery operations recorded higher capacity utilisation from higher offtake.
In its outlook, the group said FFB production growth is expected to continue for the reaminder of the year. This is due to the progression of existing mature areas into higher yielding brackets along with higher harvesting areas in the Indonesian estates.
The output from its Malaysian estates is expected to be moderated by the escalation of replanting activities.
It added that with the sustained success of the Johor Premium Outlets, a third phase is scheduled to be opened by end-2018.
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