PETALING JAYA: Genting Plantations Bhd
, which posted higher revenue and profitability for the second quarter ended June 30 (2Q25) as well as for the first half of the year (1H25), anticipates palm product prices to remain stable in the near term.
This outlook is supported by improved export momentum, thanks to price competitiveness against soybean oil.
Additionally, higher biodiesel mandates in Indonesia, Brazil, and the US are also helping support prices.
Nonetheless, the plantation group said that seasonally higher production and the absence of festive-driven demand, coupled with ongoing uncertainties surrounding trade policies, may limit the upside potential for prices.
"Barring any weather anomalies, the group expects fresh fruit bunches (FFB) production to improve in the remaining months of the year, underpinned by anticipated crop recovery and progression of existing mature areas into higher yielding brackets in Indonesia," it said in a statement.
In the 2Q25, its net profit came in RM192.57mil, bringing 1H25 figure to RM253.83mil. Revenue for the 2Q stood at RM766.99mil, while first-half revenue reached RM1.49bil. This was underpinned by higher palm product prices and higher revenue arising from the sales of land in property segment, which compensated for the lower sales volume at the downstream manufacturing segment.
The group achieved crude palm oil price of RM3,802 per metric tonne (mt) and RM3,969 per mt in 2Q25 and 1H25 respectively. Meanwhile palm kernel price in 2Q25 and 1H25 were RM3,404 and RM3,361, respectively.
The company declared an interim single-tier dividend of 10.0 sen per ordinary share.
