MARKET DEVELOPMENT
TSH Resources FY13 Earnings Double to RM153.1m (Update)
TSH Resources FY13 Earnings Double to RM153.1m (Update)
25/02/2014 (The Star) - Sabah-based TSH Resources Bhd's earnings jumped 98.7% to RM153.1mil in the financial year ended Dec 31, 2013 (FY13) from RM77.03mil in FY12 and proposed a dividend of 3.5 sen a share.
It said on Tuesday the profit after tax for FY13 was the highest ever at RM224.6mil, an increase of 132% higher than the core profit after tax of RM97mil a year ago.
"This spectacular result was achieved on the back of very strong growth in fresh fruit bunches (FFB) production in 2013 and reduction in production costs, in the face of lower crude palm oil (CPO) prices registered during the year.
"This record profit after tax was contributed by core profit after tax of RM139.3mil and investment disposal gain of RM85.3mil," it said.
TSH said its revenue rose 3.3% to RM1.016bil from RM983.65mil.
The company said production costs were lower due to better efficiency. This saw gross profit margin rising to 30.6% in 2013 from 25.5% a year ago.
The gross profit margin improved despite a 15% lower average crude palm oil price of RM2,251 in this year compared to RM2,650 in 2012. The effective reduction in unit production cost has been very significant over the last one year.
TSH chairman Datuk Kelvin Tan said since 2008, TSH's FFB production had been growing on average at 34.4% per annum.
"With cash from the disposal of non-core investment in Pontian United Plantation Bhd, we have a stronger platform to accelerate our new oil palm planting and acquisition of primarily greenfield plantations.
"Almost 80% of oil palm plantation trees of TSH are now immature and young matured. These young trees will continue to fuel FFB production growth. Coupled with our on-going new planting, we believe that we can sustain a double digit growth in FFB production for the next five to seven years.
"In addition, we expect our unit production cost to continuously undergo downtrend as our FFB yield increases for the next few years," Tan said.
For Q4, 2013 the core profit after-tax jumped 53% to RM50mil from the core profit after-tax of RM32.7mil a year ago.
The core profit after tax was calculated after excluding non-operating items such as currency translation difference.
Its revenue rose 6% to RM278.15mil from RM216.81mil. Its earnings per share were 3.64 sen compared with 3.72 sen.
It said on Tuesday the profit after tax for FY13 was the highest ever at RM224.6mil, an increase of 132% higher than the core profit after tax of RM97mil a year ago.
"This spectacular result was achieved on the back of very strong growth in fresh fruit bunches (FFB) production in 2013 and reduction in production costs, in the face of lower crude palm oil (CPO) prices registered during the year.
"This record profit after tax was contributed by core profit after tax of RM139.3mil and investment disposal gain of RM85.3mil," it said.
TSH said its revenue rose 3.3% to RM1.016bil from RM983.65mil.
The company said production costs were lower due to better efficiency. This saw gross profit margin rising to 30.6% in 2013 from 25.5% a year ago.
The gross profit margin improved despite a 15% lower average crude palm oil price of RM2,251 in this year compared to RM2,650 in 2012. The effective reduction in unit production cost has been very significant over the last one year.
TSH chairman Datuk Kelvin Tan said since 2008, TSH's FFB production had been growing on average at 34.4% per annum.
"With cash from the disposal of non-core investment in Pontian United Plantation Bhd, we have a stronger platform to accelerate our new oil palm planting and acquisition of primarily greenfield plantations.
"Almost 80% of oil palm plantation trees of TSH are now immature and young matured. These young trees will continue to fuel FFB production growth. Coupled with our on-going new planting, we believe that we can sustain a double digit growth in FFB production for the next five to seven years.
"In addition, we expect our unit production cost to continuously undergo downtrend as our FFB yield increases for the next few years," Tan said.
For Q4, 2013 the core profit after-tax jumped 53% to RM50mil from the core profit after-tax of RM32.7mil a year ago.
The core profit after tax was calculated after excluding non-operating items such as currency translation difference.
Its revenue rose 6% to RM278.15mil from RM216.81mil. Its earnings per share were 3.64 sen compared with 3.72 sen.