KUALA LUMPUR: Subur Tiasa Holdings Bhd posted its highest quarterly profit in more than 10 years, as palm oil prices jumped to multiple-year highs.
The group’s timber operations also reported improved results due to increased sales volume.
Net profit in the three-month ended July 31 was RM19.4mil compared with a loss of RM26.75mil made a year ago.
Revenue rose to RM106mil from RM72mil previously. For quarter-on-quarter (q-o-q) review, revenue and pre-tax profit increased by RM32.9mil and RM24.1mil respectively, mainly contributed by 79% increase in crude palm oil price.
from RM2,335 per tonne to RM4,183 per tonne,” it said in a filing to Bursa Malaysia yesterday.
Subur Tiasa expects its palm oil division to generate higher earnings, underpinned by higher fresh fruit bunches (FFB) production during the peak crop season.
“The CPO price is expected to remain firm in line with tight supplies as overall FFB yield per hectare in Malaysia is on the declining trend aggravated by manpower issue and Covid-19 lockdown. This is further supported by tight supplies of rival edible oils due to adverse climatic change,” it said.
Subur Tiasa has also signalled further improvement at its currently loss-making timber operations.
“The timber segment’s selling price is expected to improved further on the back of rising demand,” it said.