The Star Online (25/05/2021) - PETALING JAYA: Genting Plantations Bhd reported a 30.2% year-on-year (y-o-y) decline in its first quarter ended March 31 net profit to RM63.73mil, while revenue for the quarter also fell y-o-y to RM536.58mil.

Basic earnings per share for the quarter was at 7.10 sen from 10.18 sen recorded in the same quarter a year ago.

“The group achieved crude palm oil (CPO) and palm kernel (PK) prices of RM2,916 per metric tonne (mt) and RM2,243 per mt respectively.

“Reflective of the higher palm products selling prices, the first quarter FY2021 earnings before interest, taxes, depreciation and amortisation for the plantation segment improved y-o-y, on account of better margins, ” it said yesterday.

Genting Plantations said its fresh fruit bunches (FFB) production in the most recent quarter was 2% lower y-o-y, due to production setbacks in Malaysia and mainly due to the compounded lagged effects of droughts in early 2019 and early 2020.

Meanwhile, its Indonesian operations saw production growth from an enlarged harvesting area and improving age profile.

“The group’s prospects for the rest of the year will track the performance of the mainstay plantation segment, which is in turn dependent principally on the movements in palm products prices and FFB production, ” it said.“The impact of the Covid-19 pandemic continues to be felt worldwide with the renewed containment measures from countries facing resurgent infection waves, ” it added.

Due to this, the group said it expects CPO prices to be primarily influenced by the impact of the pandemic on global economic conditions as well as the demand and supply dynamics of palm oil and other substitute oils and fats.

“Notwithstanding lacklustre production in the first quarter, we expect a recovery in crop output and overall growth in FFB production for the year underpinned by additional mature areas and favourable age profile of the Indonesia operations.

“On the other hand, replanting activities are likely to moderate production from Malaysian estates, ” Genting Plantations said.

Read more at https://www.thestar.com.my/business/business-news/2021/05/25/genting-plantations-records-q1-net-profit-of-rm6373mil