PETALING JAYA: Genting Plantations Bhd
expects palm oil prices to remain supported in the near term, supported by higher biofuel blending mandates in major producing countries and firmer energy prices amid ongoing geopolitical tensions.
However, the group said seasonally higher production and subdued demand from key importing countries could limit further price upside.
“The group anticipates fresh fruit bunch (FFB) production to maintain its positive momentum in the near term, supported by additional harvesting areas and the progression of existing mature areas into higher-yielding age profiles,” the plantation group said in a statement.
It cautioned that the increasing likelihood of El Nino conditions could pose risks to yields, although any impact is expected to be lagged.
“The group’s prospects for 2026 will track the performance of its mainstay plantation segment, which is in turn dependent principally on the movements in palm products prices and the group’s FFB production,” Genting Plantations said.
In the second quarter ended June 30, 2026 (2Q26), Genting Plantations’ net profit fell 26.8% to RM140.9mil, or earnings per share of 15.71 sen, from RM192.6mil, or 21.46 sen, a year earlier.
Revenue, however, rose 30% to RM996.8mil from RM767mil previously, underpinned by improved sales volumes in the downstream manufacturing segment and higher FFB production.
The group said FFB production increased year-on-year, mainly due to higher cropping trends across certain estates and supported by favourable weather conditions.
The group achieved crude palm oil (CPO) prices of RM3,758 per tonne in 2Q26 and RM3,694 per tonne in the first half of 2026 (1H26), while palm kernel prices stood at RM3,478 and RM3,329 per tonne, respectively.
Genting Plantations’ net profit declined 17.7% to RM209mil in 1H26 from RM253.8mil previously, despite revenue rising 16% to RM1.72bil from RM1.49bil.
The board declared an interim single-tier dividend of 10 sen per share, unchanged from a year earlier.
The group said its plantation segment recorded higher adjusted earnings before interest, tax, depreciation and amortisation, driven by higher FFB production – although this was partly moderated by lower CPO prices.
Its downstream manufacturing segment also recorded improved performance on increased sales volume and better margins.
“The downstream manufacturing segment is expected to continue facing margin pressure amid persistent excess refining capacity in Indonesia and competition from Indonesian counterparts,” the company said.
Meanwhile, the property segment will continue to focus on its township developments and accelerate the development of Johor Tech Smart City within the Johor-Singapore Special Economic Zone.
Moreover, the agricultural technology segment will continue driving innovation by applying artificial intelligence, data analytics, and genomic research to create high-performing planting materials and sustainable biological solutions.
