MARKET DEVELOPMENT
Genting Plantation Q1 Results Down On Lower Palm Product Prices
Genting Plantation Q1 Results Down On Lower Palm Product Prices
28/05/2015 (Bernama) - Genting Plantation Bhd's pre-tax profit and revenue dropped by 54 per cent and three per cent, respectively for the first quarter ended March 31, 2015 due to lower palm product selling prices and fresh fruit bunch production (FFB).
In a filing to Bursa Malaysia, it said pre-tax profit shed to RM66.6 million from RM144.69 million in the first quarter (Q1) last year, while revenue fell to RM324.4 million from RM332.88 million.
It said the group's FFB production was six per cent lower year-on-year (y-o-y) in Q1 2015, mainly on account of a weather-induced drop in crop output at its Sabah estates, despite an increase in production in Indonesia owing to a sizeable addition of newly-mature areas and young mature areas progressing into higher yielding brackets.
"As for palm product selling prices, crude palm oil averaged RM2,246 a metric tonne in Q1 2015, down 16 per cent from the same period last year amid a slowdown in palm oil exports and tracking the weaker cues from the soybean and crude mineral oil markets.
"The average palm kernel price was 12 per cent lower y-o-y as sentiment in the lauric oil market was comparatively less bullish than a year ago during the immediate aftermath of Typhoon Haiyan's impact on coconut oil production," it said.
The group said the movement in palm product prices and crop production trends will have an influence on its performance, with property market conditions also among the key factors for the rest of 2015.
"The palm oil market is expected to continue taking its cue in the coming months from the overall supply and demand balance of the global edible oils industry, which may in turn be affected by changes in weather conditions, market sentiment and currency exchange," it said.
Regardless of the market condition, Genting Plantation anticipates that crop production growth prospects for the year will continue to be primarily driven by the Plantation-Indonesia segment in view of its younger age profile with potential for further yield improvement.
In a filing to Bursa Malaysia, it said pre-tax profit shed to RM66.6 million from RM144.69 million in the first quarter (Q1) last year, while revenue fell to RM324.4 million from RM332.88 million.
It said the group's FFB production was six per cent lower year-on-year (y-o-y) in Q1 2015, mainly on account of a weather-induced drop in crop output at its Sabah estates, despite an increase in production in Indonesia owing to a sizeable addition of newly-mature areas and young mature areas progressing into higher yielding brackets.
"As for palm product selling prices, crude palm oil averaged RM2,246 a metric tonne in Q1 2015, down 16 per cent from the same period last year amid a slowdown in palm oil exports and tracking the weaker cues from the soybean and crude mineral oil markets.
"The average palm kernel price was 12 per cent lower y-o-y as sentiment in the lauric oil market was comparatively less bullish than a year ago during the immediate aftermath of Typhoon Haiyan's impact on coconut oil production," it said.
The group said the movement in palm product prices and crop production trends will have an influence on its performance, with property market conditions also among the key factors for the rest of 2015.
"The palm oil market is expected to continue taking its cue in the coming months from the overall supply and demand balance of the global edible oils industry, which may in turn be affected by changes in weather conditions, market sentiment and currency exchange," it said.
Regardless of the market condition, Genting Plantation anticipates that crop production growth prospects for the year will continue to be primarily driven by the Plantation-Indonesia segment in view of its younger age profile with potential for further yield improvement.