MARKET DEVELOPMENT
Genting Plantations Q1 Profit Surges to RM101mil on Stronger Palm Oil Prices
Genting Plantations Q1 Profit Surges to RM101mil on Stronger Palm Oil Prices
29/05/2014 (The Star) - Genting Plantations Bhd’s net profit more than doubled to RM101.06mil in the first quarter ended March 31 against RM44.02mil in the same period a year ago.
Revenue, however, declined 3% year-on-year (y-o-y) to RM332.88mil in the said quarter against the RM343.03mil achieved a year ago, as lower sales registered by the property segment more than outweighed an increase in contribution from the plantation segment, which had benefited from stronger palm product selling prices and higher fresh fruit bunch (FFB) production in Indonesia.
Earnings per share in the first quarter stood at 13.32 sen from 5.80 sen previously.
“The group’s performance for the coming months will continue to be influenced by external forces, including world palm oil price movements, the impact of changes in weather conditions on crop production trends, property market conditions, input cost factors as well as currency exchange rates,” Genting Plantations said in the notes accompanying its financial results.
Nevertheless, it said the growth in Indonesian production due to young areas progressing to higher yielding brackets and additional plantings coming into maturity, as seen in the first quarter, is expected to continue to be the main driver of overall production improvements for the group, moving forward.
Commenting on the results, Genting Plantations said palm product selling prices maintained their uptrend in the first quarter, with the price of crude palm oil increasing 16% y-o-y while palm kernel prices, which reached an all-time high of RM2,368 per tonne in March, averaged RM1,994 a tonne for the quarter, up 71% from the same period last year.
Genting Plantations’ overall FFB production grew 4% y-o-y in the first quarter, as lower crop output in Malaysia was more than compensated for by an increase in Indonesia, where sizeable mature areas progressed to higher yielding brackets and more newly matured plantings were brought into harvesting.
The plantation firm said earnings before interest, tax, depreciation and amortisation (EBITDA) for plantation-Malaysia improved notably during the quarter compared with a year ago, mainly due to a combination of stronger palm product selling prices and lower fertiliser prices, along with the absence of the one-off contribution in support of the group’s social responsibilities which had affected first-quarter 2013 EBITDA.
Likewise, it said plantation-Indonesia improved markedly from a break-even position in first-quarter 2013 to contribute an Ebitda of RM13.6mil in first-quarter 2014 on the back of encouraging growth in FFB production and better palm product selling prices.
However, the property segment’s EBITDA came in weaker y-o-y in first-quarter 2014, as sales at Genting Indahpura were lower compared with the total registered in the same period last year, which had included a one-off industrial land sale of RM84.9mil.
Revenue, however, declined 3% year-on-year (y-o-y) to RM332.88mil in the said quarter against the RM343.03mil achieved a year ago, as lower sales registered by the property segment more than outweighed an increase in contribution from the plantation segment, which had benefited from stronger palm product selling prices and higher fresh fruit bunch (FFB) production in Indonesia.
Earnings per share in the first quarter stood at 13.32 sen from 5.80 sen previously.
“The group’s performance for the coming months will continue to be influenced by external forces, including world palm oil price movements, the impact of changes in weather conditions on crop production trends, property market conditions, input cost factors as well as currency exchange rates,” Genting Plantations said in the notes accompanying its financial results.
Nevertheless, it said the growth in Indonesian production due to young areas progressing to higher yielding brackets and additional plantings coming into maturity, as seen in the first quarter, is expected to continue to be the main driver of overall production improvements for the group, moving forward.
Commenting on the results, Genting Plantations said palm product selling prices maintained their uptrend in the first quarter, with the price of crude palm oil increasing 16% y-o-y while palm kernel prices, which reached an all-time high of RM2,368 per tonne in March, averaged RM1,994 a tonne for the quarter, up 71% from the same period last year.
Genting Plantations’ overall FFB production grew 4% y-o-y in the first quarter, as lower crop output in Malaysia was more than compensated for by an increase in Indonesia, where sizeable mature areas progressed to higher yielding brackets and more newly matured plantings were brought into harvesting.
The plantation firm said earnings before interest, tax, depreciation and amortisation (EBITDA) for plantation-Malaysia improved notably during the quarter compared with a year ago, mainly due to a combination of stronger palm product selling prices and lower fertiliser prices, along with the absence of the one-off contribution in support of the group’s social responsibilities which had affected first-quarter 2013 EBITDA.
Likewise, it said plantation-Indonesia improved markedly from a break-even position in first-quarter 2013 to contribute an Ebitda of RM13.6mil in first-quarter 2014 on the back of encouraging growth in FFB production and better palm product selling prices.
However, the property segment’s EBITDA came in weaker y-o-y in first-quarter 2014, as sales at Genting Indahpura were lower compared with the total registered in the same period last year, which had included a one-off industrial land sale of RM84.9mil.