MARKET DEVELOPMENT
Genting Plantations Profit Down
Genting Plantations Profit Down
30/05/2013 (The Star) - Genting Plantations Bhd's net profit for the first quarter of 2013 fell 44% to RM44mil from RM78.7mil a year ago, due to the effects of lower palm product selling prices and a RM31mil contribution for charity purposes.
However, its revenue for the quarter has increased by 26% to RM343mil from RM272.6mil a year ago, notably due to stronger sales in its property segment. Earnings per share were lower at 5.8 sen versus 10.38 sen a year ago.
“In the first quarter, the group achieved average crude palm oil and palm kernel selling prices of RM2,293 per tonne and RM1,165 per tonne, down 28% and 40% respectively from the corresponding period of 2012,” it said.
Genting Plantations said its softer palm product selling prices outweighed the impact of higher crop yields during the quarter, adding that its fresh fruit bunches output had increased 32% year-on-year (yoy) mainly from its Sabah estates due to favourable weather and additional planted areas moving into higher yielding brackets.
On another note, the firm's property division earnings had quadrupled, posting higher profit of RM25mil from RM5.9mil a year ago backed by strong demand for properties in Genting Indahpura.
Genting Plantations said it would continue to leverage on its business in Johor, particularly in the burgeoning Iskandar Malaysia region.
“The strategically-located Genting Indahpura project will build on the sustained strong demand for its property offerings by carrying out selective new launches and marketing activities to achieve its sales objectives,” it said.
Moving forward, the group said after having achieved a marked improvement in the first quarter, it remains on course to surpass the previous year's output, boosted by the growth in Indonesia.
“In Indonesia, the group's operations also saw a notable improvement in crop output as more planted areas reached maturity and existing harvesting areas progressed into higher yielding brackets.
“The Indonesia plantation segment broke even in the first quarter, underpinned by the positive contribution from the West Kalimantan region arising from the improvements in crop yield and processing efficiency,” it said.
However, its revenue for the quarter has increased by 26% to RM343mil from RM272.6mil a year ago, notably due to stronger sales in its property segment. Earnings per share were lower at 5.8 sen versus 10.38 sen a year ago.
“In the first quarter, the group achieved average crude palm oil and palm kernel selling prices of RM2,293 per tonne and RM1,165 per tonne, down 28% and 40% respectively from the corresponding period of 2012,” it said.
Genting Plantations said its softer palm product selling prices outweighed the impact of higher crop yields during the quarter, adding that its fresh fruit bunches output had increased 32% year-on-year (yoy) mainly from its Sabah estates due to favourable weather and additional planted areas moving into higher yielding brackets.
On another note, the firm's property division earnings had quadrupled, posting higher profit of RM25mil from RM5.9mil a year ago backed by strong demand for properties in Genting Indahpura.
Genting Plantations said it would continue to leverage on its business in Johor, particularly in the burgeoning Iskandar Malaysia region.
“The strategically-located Genting Indahpura project will build on the sustained strong demand for its property offerings by carrying out selective new launches and marketing activities to achieve its sales objectives,” it said.
Moving forward, the group said after having achieved a marked improvement in the first quarter, it remains on course to surpass the previous year's output, boosted by the growth in Indonesia.
“In Indonesia, the group's operations also saw a notable improvement in crop output as more planted areas reached maturity and existing harvesting areas progressed into higher yielding brackets.
“The Indonesia plantation segment broke even in the first quarter, underpinned by the positive contribution from the West Kalimantan region arising from the improvements in crop yield and processing efficiency,” it said.