Lower CPO prices likely to affect sector results

Lower CPO prices are expected to be a drag on upstream earnings of most planters under HLIB Research’s coverage as seasonally higher FFB output is offset by significantly lower palm product prices.

PETALING JAYA: Beseiged by the lower crude palm oil (CPO) prices, most planters will likely register weaker performances for both quarter-to-quarter (q-o-q) and year-on-year (y-o-y) in their upcoming results to be announced, from next week.

According to Hong Leong Investment Bank (HLIB) Research, most plantation companies under its coverage are expected to post a y-o-y decline in their upstream earnings.