PETALING JAYA: Genting Plantations Bhd
expects palm oil prices to remain firm in the near term, supported in part by elevated crude oil prices amid ongoing geopolitical tensions.
In a filing with Bursa Malaysia, it said this has improved biodiesel economics and accelerated biofuel blending policies in major producing countries, thereby reducing the availability of both palm oil and soybean oil for export.
“The global shortage of fertiliser is expected to dampen yields of annual oilseed crops for the current planting season.”
However, Genting Plantations noted that further upside may be moderated by a combination of factors, including a weaker global economic outlook and softening demand amidst elevated pricing.
For its first quarter ended March 31, 2026 (1Q26), net profit rose to RM68.06mil from RM61.26mil in the previous corresponding period, while revenue improved to RM720.22mil from RM719.45mil a year earlier.
“The group recorded marginally higher revenue during the first quarter of 2026 compared to the corresponding period last year, as revenue growth across all segments was largely moderated by higher inter-segment sales.
“Fresh fruit bunch (FFB) production in 1Q26 increased year-on-year, mainly attributable to a higher cropping trend across certain estates within the group, supported by favourable weather conditions.”
The group’s achieved crude palm oil (CPO) price in 1Q26 was lower year-on-year, primarily due to supply concerns in both Malaysia and Indonesia that had elevated prices in 1Q25.
“For most of 1Q26, price upside was capped by ample global soybean supply, which weighed on palm oil demand.
“However, following the onset of the Middle East war, CPO prices strengthened towards the end of the quarter, tracking the spike in crude oil prices, which in turn boosted biodiesel demand and provided support to palm oil prices.”
Similarly, Genting Plantations said its achieved palm kernel prices also declined year-on-year.
“The plantation segment’s earnings before interest, taxes, depreciation and amortisation (Ebitda) for 1Q26 was lower on account of weaker palm product prices.
“Additionally, 1Q25 featured higher profit realised on brought forward inventory. Collectively, these impacts were partially mitigated by higher FFB production.”
It added that Ebitda for the property segment in 1Q26 was higher year-on-year, in tandem with higher revenue.
