27/11/2012 (Bernama) - Jaya Tiasa Holdings Bhd is on target to commission three more palm oil mills, all of which are strategically located near its oil palm plantations, over the next two years.

Its Chairman Tan Sri Abdul Rahman Abdul Hamid said the mills are estimated to cost a cumulative RM235 million.

He said two mills are under construction while the other was in the final stage of planning.

"Our present mill has been upgraded, with enlarged palm oil processing capacity of 330,000 metric tonnes a year.

"We certainly need more mills to cope with the expected rapid growth in crop production in the years ahead as a sizeable oil palm-planted estates are reaching maturity," he said in a statement in the run-up to the group's 52nd annual general meeting for financial year ended June 30, 2012 here on Wednesday.

Abdul Rahman said Jaya Tiasa's corporate vision was to be the country's leading producer of renewable and sustainable quality palm oil and wood-based products.

He said the oil palm division had continued to be the "solid pillar of growth" for the group.

In the financial year under review, he said, the group's palm oil mills produced about 55,000 metric tonnes of CPO and 9,000 metric tonnes of palm kernel.

As of June 30, 2012, the company's total plantable areas stood at 70,900 hectares over 10 plantations in the state.

"Of the total, 83 per cent or 58,545 hectares are fully planted, an increase of about six per cent compared to last year.

"Sixty-four per cent of the planted area or 37,419 hectares have matured.

"Our fresh fruit bunches' production has increased by 68 per cent to 604,836 metric tonnes compared to last financial year's production of only 359,100 metric tonnes," he added.

Revenue from the division was at RM352 million, a 62 per cent increase from the 2011 financial year, while pre-tax profit surged by 43 per cent to RM151 million, he said.

Abdul Rahman attributed the impressive performance largely to higher output despite the lower CPO price towards the end of the financial year.

For its current financial year, Jaya Tiasa had posted a stronger set of results, he said.

"We closed the year with a RM1.184 billion revenue, up 36 per cent over the previous financial year, on the back of higher oil palm and logs' production.

Despite the lower profit margin due to lower prices of oil palm and timber, pre-tax profit grew by nine per cent to RM225 million and net profit was RM171 million, a 12 per cent increase, he said.

Earnings per share rose to 20.23 sen from 18.20 sen in the last financial year.