22/05/2012 (The Star) - TSH Resources Bhd posted net profit of RM15.05mil in the first quarter ended March 31, 2012, a decline of 37% from the RM23.95mil a year ago mainly due to lower profit contribution from the jointly controlled entities.

It said on Monday that revenue was RM227.38mil, down 9.9% from RM252.59mil a year ago due to lower sale revenues in wood product and other segments. Earnings per share were 1.84 sen compared with 2.93 sen.

TSH said it posted a lower profit before taxation of RM23.1mil compared to RM33.6mil a year ago mainly due to lower profit contribution from the jointly controlled entities.

It added that other factors were the higher losses in foreign exchange and commodity forward contract notably in palm segment and higher finance cost.

On the palm and bio-integration business, it said the segment recorded higher pretax profit primarily due to higher crop production which largely resulted from increase in mature plantation field in Indonesia and higher oil extraction rate.

This was despite a lower average CPO price for the current quarter at RM2,957 compared to corresponding quarter of RM3,437.

As for the fresh fruit bunches (FFB) production increased by 14% from 78,571 tonnes in Q1 2011 to 89,964 tonnes in Q1, 2012.

TSH said CPO production also increased from 57,013 tonnes a year ago to 62,227 tonnes in Q1, 2012.

On the outlook, it said palm oil prices increased above RM3,000. Due to the current seasonal low production of FFB in Malaysia and Indonesia and strong demand from European Union, Pakistan and others, it expected palm oil prices to remain firm in the short term.

“The group remains focus to be a sizeable plantation player in the region and will continue to increase its land bank if the opportunity arises.

"With the expansion of palm oil plantations areas in Indonesia and with increasing hectarage moving towards maturity, the group is expected to achieve a satisfactory level of profitability in the coming quarters,” it pointed out.