Genting Plantations' Q3 net profit jumps to RM102.23mil

KUALA LUMPUR: Genting Plantations Bhd’s (GENP) net profit jumped to RM102.23 million in the third quarter ended Sept 31, 2021 (Q3 FY2021), from RM61.38 million recorded in the same quarter in 2020.

Revenue rose to RM732.82 million from RM645.56 million previously, GENP said in a filing with Bursa Malaysia today.

For the first nine months ended Sept 31, 2021 (9M FY2021), the group’s net profit increased to RM270.58 million from RM175.31 million in 9M FY2020, while revenue surged to RM2.01 billion from RM1.76 billion previously.

GENP said it registered higher year-on-year (y-o-y) revenue of 14 per cent and 17 per cent for Q3 2021 and 9M 2021, respectively, mainly buoyed by the stronger performance of the plantation segment, underpinned by a notable increase in palm products prices.

On the other hand, the downstream manufacturing segment posted marginally lower y-o-y revenue for both Q3 2021 and 9M 2021 on the back of lower sales volume although this was mitigated by the effect of higher palm products selling prices, it said.

"The group’s achieved crude palm oil price in Q3 2021 and 9M FY2021 were RM3,502 per metric tonne (MT) and RM3,246 MT, respectively, whilst palm kernel price in Q3 2021 and 9M FY2021 were RM2,220 MT and RM2,284 MT, respectively.

"The group’s fresh fruit bunches (FFB) production in Q3 2021 and 9M FY2021 were flat y-o-y as the higher crop production in Indonesia, in line with increased harvesting areas and better yields, compensated for the lower harvest in Malaysia, which were impacted by the lagged effects of droughts coupled with progressive replanting activities,” the plantation company said.

GENP said earnings before interest, tax, depreciation, and amortisation (EBITDA) for the plantation segment for the quarter under review and 9M FY2021 surged y-o-y stemming from the effect of stronger palm products prices.

"EBITDA for the downstream manufacturing segment for Q3 2021 and 9M FY2021 improved y-o-y mainly on account of higher margins but this was moderated by lower sales volume,” it added.

On prospects, the group said the remaining months of 2021 will track the performance of its mainstay plantation segment, which is dependent principally on the movements in palm products prices and the group’s FFB production.

"The group expects palm oil prices for the remaining part of the year to remain resilient supported by a confluence of factors such as sustained demand on the back of a global economic recovery, tightness in supply ahead of the upcoming monsoon season as well as historically high prices of other substitute oils and fats,” it said. - Bernama

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