MARKET DEVELOPMENT
Robust Measures Help TSH Improve Core Profit
Robust Measures Help TSH Improve Core Profit
28/02/2017 (The Star) - TSH Resources Bhd’s robust measures to control its unit cost of production and the better crude palm oil (CPO) selling price helped to improve the group’s core operating profit in the fourth quarter ended Dec 31, 2016.
Core operating profit for the quarter was RM48.4mil against RM30.3mil for the preceding quarter mainly due to better performance of the palm segment,” said TSH.
In a filing with Bursa Malaysia, the Sabah-based mid-tier plantation group announced revenue for the quarter rose by 18.7% to RM244.50mil in contrast to the RM205.96mil registered a year earlier.
TSH’s palm segment’s fresh fruit bunch (FFB) production increased from 151,297 tonnes in the third quarter to 192,374 tonnes in the fourth quarter. The average selling price also surged from RM2,453 per tonne in the third quarter to RM2,784 per tonne in the fourth quarter.
Commenting on TSH’s performance moving forward, the company noted that it remained optimistic on its operations, given the long-term prospects of the palm oil industry.
“The palm product segment, which accounts for more than 80% of the revenue and profit of the group, will remain a significant contributor to group profit. The management will continue to focus on the cost efficiency and yield management in 2017.
“Higher FFB output, coupled with ongoing cost controls, will help to lower the unit cost of production and raise profitability in the long run on the premise that CPO prices should sustain at the current level,” the company said.
As for its full-year net profit, TSH registered a whopping 153.5% increase to RM56.52mil compared with a net loss of RM105.55mil previously.
Full-year revenue widened by 9.1% to RM872.51mil compared with RM799.53mil a year earlier. The significant improvement in revenue was primarily due to the higher contribution from TSH’s palm segment and the higher contribution from jointly controlled entities and associate companies.
TSH has proposed a first and final single-tier dividend of two sen per ordinary share with respect to its 2016 financial year.
Core operating profit for the quarter was RM48.4mil against RM30.3mil for the preceding quarter mainly due to better performance of the palm segment,” said TSH.
In a filing with Bursa Malaysia, the Sabah-based mid-tier plantation group announced revenue for the quarter rose by 18.7% to RM244.50mil in contrast to the RM205.96mil registered a year earlier.
TSH’s palm segment’s fresh fruit bunch (FFB) production increased from 151,297 tonnes in the third quarter to 192,374 tonnes in the fourth quarter. The average selling price also surged from RM2,453 per tonne in the third quarter to RM2,784 per tonne in the fourth quarter.
Commenting on TSH’s performance moving forward, the company noted that it remained optimistic on its operations, given the long-term prospects of the palm oil industry.
“The palm product segment, which accounts for more than 80% of the revenue and profit of the group, will remain a significant contributor to group profit. The management will continue to focus on the cost efficiency and yield management in 2017.
“Higher FFB output, coupled with ongoing cost controls, will help to lower the unit cost of production and raise profitability in the long run on the premise that CPO prices should sustain at the current level,” the company said.
As for its full-year net profit, TSH registered a whopping 153.5% increase to RM56.52mil compared with a net loss of RM105.55mil previously.
Full-year revenue widened by 9.1% to RM872.51mil compared with RM799.53mil a year earlier. The significant improvement in revenue was primarily due to the higher contribution from TSH’s palm segment and the higher contribution from jointly controlled entities and associate companies.
TSH has proposed a first and final single-tier dividend of two sen per ordinary share with respect to its 2016 financial year.