KUALA LUMPUR: Hap Seng Plantations Holdings Bhd posted an 18.6% increase in net profit to RM36.95mil in the fourth quarter ended Dec 31, 2021, as compared to RM31.17mil in the previous corresponding quarter on higher average selling prices of crude palm oil (CPO) and palm kernel (PK)
Revenue for the quarter was RM153.27mil, a 22.75% improvement over the comparative quarter.
The board of directors declared a second interim dividend of 5.5 sen per share, which brought full-year payout to seven sen per share.
"Average selling price of CPO and PK for the current quarter were higher at RM3,148 per tonne and RM2,027 per tonne respectively as compared to the preceding year corresponding quarter of RM2,376 per tonne for CPO and RM1,435 per tonne for PK," said the group.
However, the improved performance was partially mitigated by lower sales volume of CPO and PK due to lower fresh fruit bunches production and extraction rates.
The group said FFB production was 5% lower than in the year-ago quarter in tandem with the lower seasonal yield trend while extraction rates were affected by the wetter weather conditions.
Over the entire year, the group's net profit came in at RM90.3mil, a jump over RM31.45mil in 2019, while revenue was RM467.6mil versus RM418.6mil in the previous year.
Moving forward, Hap Seng Plantations expects FFB production to recover in the second quarter of the year with normalising weather conditions, leading to higher CPO supply.
CPO prices are also expected to be lower in the near future on lower demand from India as the country's revised import duty could erode its price advantage.
"Overall, the Group expects its results for the financial year ending 31 December 2021 to be influenced by movements in commodities prices and the uncertainties in the global economic environment caused by the prolonged Covid-19 pandemic," it said.