Genting Plantations quarterly net profit up 39%

PETALING JAYA: Genting Plantations Bhd (GENP) registered a 39% growth in net profit to RM100.98mil for the first quarter ended March 31, compared with the corresponding quarter last year.

It reported a 32% year-on-year increase in revenue to RM529.07mil, attributable to higher refinery business and completion of property projects.

According to a press release yesterday, GENP’s plantation segment posted lower year-on-year revenue as weaker palm product selling prices outweighed the higher fresh fruit bunch (FFB) production.

“FFB production in Q1FY18 grew by a fifth year-on-year, with improvements from both Malaysia and Indonesia segments.

The higher FFB production from the Malaysian plantation business was due to stronger yields, despite having lower harvest- ing area from its replanting activities, while Indonesia had a higher output due to additional harvesting areas, including that from newly acquired subsidiary PT Kharisma Inti Usaha, the company said.

The group achieved crude palm oil (CPO) and palm kernel price of RM2,375 and RM2,083 per tonne, respectively.

The biotechnology segment posted a lower loss year-on-year, on account of its lower research and development expenditure.

Its downstream manufacturing segment registered a modest profit during the quarter from higher sales and improved capacity utilisation of its refinery operations.

GENP added that its prospects in the remaining months of 2018 would continue to be guided by the performance of the plantation segment, which in turn is contingent on the direction of palm product prices and the group’s FFB production volume.

“With the FFB production having achieved a double-digit year-on-year improvement in Q1FY18, the group expects this uptrend to continue for this year, boosted by the growth from its Indonesian plantation segment amid additional harvesting areas, along with a better age profile,” said GENP.

For the property segment, efforts would be channelled towards property offerings that are aligned to market demands.

Genting Highlands Premium Outlets and Johor Premium Outlets (JPO) are expected to continue performing well with JPO registering its first full-year of operations this year.

GENP’s biotechnology segment would continue to leverage on its research capacities and capabilities for the development of commercial solutions and applications.