Genting Plantations Q3 net profit declined to RM75.49m

KUALA LUMPUR, Nov 23 — Genting Plantations Bhd’s net profit for the third quarter ended September 30, 2022 (Q3 FY2022) slipped to RM75.49 million from RM102.22 million in the same quarter last year on account of higher production cost.

However, revenue rose 12 per cent to RM822.37 million versus RM732.82 million previously, it said in a filing with Bursa Malaysia today.

“The better performance was mainly buoyed by higher sales volume in the plantation segment and higher pricing of products in the downstream manufacturing segment,” it said in a statement.

On a nine-month basis ended September 30, 2022, its net profit widened to RM415.56 million from RM270.58 million on the back of revenue rising 16 per cent to RM2.40 billion from RM2.06 billion in the preceding year.

The group said the rise was underpinned by stronger palm products prices which eclipsed the impact of lower sales volume of both plantation and downstream manufacturing segments.

Notwithstanding higher revenue achieved in Q3 FY2022 and over the first nine months of FY2022, losses from the agricultural technology (AgTech) segment was higher year-on-year (y-o-y) due to higher research and development expenditure, it said.

Meanwhile, fresh fruit bunch (FFB) production in Q3 FY2022 was comparable y-o-y as its operations in Indonesia recorded better harvest backed by favourable age profile and higher harvesting area, which compensated for the lower output in Malaysia due to its replanting activities.

However, FFB production for year-to-date 2022 declined y-o-y due to persistently wet weather which affected harvesting and logistic activities during the early part of the year.

On prospects for the remaining months of 2022, the group will track the performance of its mainstay plantation segment, which is dependent principally on the movements in palm products prices and its FFB production.

“We expect palm oil prices for the remaining part of the year to be supported by its current attractive discount against other edible oils and gas oil, the normalising of Indonesia’s stockpile, the impending increase of Indonesia’s biodiesel mandate and the anticipated low FFB production ahead of a third consecutive year of wet weather.

“However, bumper harvest of soybean and rapeseed for the current season and the looming economic turmoil may weaken the support on palm oil prices,” the statement said.

The group’s FFB production in Indonesia is expected to improve with its favourable age profile and higher harvesting area but largely moderated by the current wet weather. Its operations in Malaysia, on the other hand, may record a setback as it continues with its replanting activities, it said. — Bernama

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