KUALA LUMPUR: Genting Plantations Bhd’s net profit for its third quarter ended Sept 30, 2021, surged to RM102.22mil from RM61.38mil in the previous corresponding period, while revenue increased to RM732.82mil from RM645.56mil a year earlier.
In a filing with Bursa Malaysia yesterday, Genting Plantations said earnings were buoyed by the stronger performance of the plantation segment, underpinned by a notable increase in palm product prices.
For the nine-month period ended Sept 30, 2021, Genting Plantations’ net profit jumped to RM270.58mil from RM175.31mil in the previous corresponding period, while revenue grew to RM2.06bil from RM1.76bil a year earlier.
Genting Plantations said its downstream manufacturing segment posted marginally lower year-on-year revenue for both the third quarter and nine-month period ended Sept 30, 2021, on the back of lower sales volume.
However, the company said this was mitigated by the effect of higher palm products selling prices.
“The group’s achieved crude palm oil price in the third quarter and year-to-date (y-t-d) ended September 2021 were RM3,502 per tonne and RM3,246 per tonne respectively, while palm kernel price in the third quarter and y-t-d 2021 were RM2,220 per tonne and RM2,284 per tonne respectively.”
Meanwhile, the group’s fresh fruit bunch (FFB) production in the third quarter and y-t-d 2021 were flat year-on-year.
It said this was because of the higher crop production in Indonesia, in line with increased harvesting areas and better yields, compensated for the lower harvest in Malaysia that were impacted by the lagged effects of droughts coupled with progressive replanting activities.
“Earnings before interest, taxes, depreciation, and amortisation (ebitda) for the plantation segment for the third quarter and y-t-d 2021 surged year-on-year, stemming from the effect of stronger palm products prices.”
Separately, Genting Plantations said ebitda for the property segment for the third quarter declined year-on-year, consistent with its lower revenue.
“Meanwhile, ebitda for y-t-d 2021 was marginally lower year-on-year despite higher revenue, mainly due to the gain derived from sale of an investment property recognised in 2020.”
Genting Plantations said the prospects for 2021 will track the performance of its mainstay plantation segment, which is in turn dependent on the movements in palm products prices and the group’s FFB production.
“The group expects the price of palm oil for the remaining part of the year to be resilient, supported by a confluence of factors such as sustained demand on the back of the global economic recovery, tightness in supply ahead of the upcoming monsoon season as well as the historically high prices of other substitute oils and fats.
The company said its FFB production growth up to the first half of 2021 was mainly driven by its Indonesian operations, as a result of additional harvesting areas and the progression of existing mature areas into higher yielding brackets.“However, production growth has moderated since then, in line with seasonal cropping patterns coupled with unfavourable weather conditions curtailing operations.
“Taking into consideration the above as well as ongoing replanting activities in its Malaysian estates, group FFB production is anticipated to be comparable to the level attained in 2020,” it said.
Source: The Star
