United Plantations bullish about fiscal 2020
10.11.2020 (www.thestar.com.my) - PETALING JAYA: United Plantations Bhd
posted a 58% rise in net profit to RM95.3mil for the third quarter ended Sept 30 mainly due to higher crude palm oil (CPO) and palm kernel (PK) average prices.
Revenue jumped 19.9% to RM334mil for the quarter under review.
For the nine months ended Sept 30, the group posted a 48.8% jump in net profit to RM300.1 mil while revenue was 8.7% higher at RM947.3 mil, mainly due to the increase in revenue for the group’s plantation segment by 20.2% as a result of higher production and average prices of CPO and PK.
The group also declared an interim dividend of 15 sen and special dividend of 5 sen; both to be paid on Dec 4,2020.
Regarding its outlook, the group said the single largest risk in the foreseeable future is the Covid-19 pandemic infecting its premises, which would result in a temporary shut-down of its factories or plantation operations.
“Due attention is therefore being directed towards doing everything that is practically possible to mitigate this risk, ” said the group in a statement.
It also warned of the likely disruption in production in the palm oil industry caused by labour shortages, presently estimated to be about 90,000 workers, as a result of border closures until at least end-2020.
The group said it will be impossible to avoid serious crop losses in 2021 due to acute labour shortages, and this may result in higher palm oil prices due to reduced production.