Upstream business crucial in planters’ 2Q earnings

By companies, HLIB forecasts FGV Holdings Bhd’s core earnings to be higher in 2Q22 on the back of higher FFB output and higher palm product prices.

KUALA LUMPUR: How plantation companies perform financially in the second quarter of this year (2Q22) will depend on their exposure to the upstream business in Malaysia and Indonesia, says Hong Leong Investment Bank (HLIB).

HLIB expects planters with significant upstream exposure in Malaysia to post flat to higher sequential performance in 2Q22 on the back of higher fresh fruit bunch (FFB) output and palm product prices.