Jaya Tiasa registers loss of RM38mil in Q3

PETALING JAYA: Timber company Jaya Tiasa Holdings Bhd has registered a net loss of RM38.41mil for its third quarter ended March 31, on the back of a 40% lower revenue of RM160.2mil, compared with the corresponding quarter a year ago.

This brings its nine-month cumulative net profit and revenue to RM5.9mil and RM660.01mil, respectively.

Jaya Tiasa said in a Bursa Malaysia filing that revenue from its palm oil division declined by 22% in the current quarter compared to a year ago due to a 24% decrease in the crude palm oil (CPO) selling price and 5% dip in fresh fruit bunch (FFB) production volume.

The FFB contraction resulted in an 11% reduction in the production volume of CPO.

The group’s timber division saw a decrease in revenue mainly due to a drop in log production volume with the ongoing timber certification in progress.

Log production volume decreased by 80% for the current quarter, and 63% for the ninemonth period.

“We are cautiously optimistic on the recovery of CPO prices in view of the expected increase in demand for CPO during the festive season, despite concerns of the growing CPO stockpile with the reinstatement of the 5% export tax.

“We foresee higher FFB and CPO production from more maturing palm age profile during the high crop season in the coming quarter,” said Jaya Tiasa.