KUALA LUMPUR (Jan 29): Chin Teck Plantations Bhd posted a 41% net profit fall in its first quarter ended Nov 30, 2018 (1QFY19) as it suffered a decline in sales and average selling prices of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel (PK).

Its 1QFY19 net profit fell to RM9.64 million from RM16.37 million a year ago, while revenue declined 31% to RM29.15 million from RM42.51 million. Production of FFB, CPO and PK were also lower, it noted.

"The group suffered an overall loss from its share of results of associates mainly due to losses suffered by its investments in oil palm plantations in Indonesia,” Chin Teck said in a stock exchange filing.

It said its investment in oil palm plantations in Lampung, Indonesia, encountered a suspension in routine harvesting due to unrest in the villages located in the vicinity of the plantations. The plantations there have since restarted harvesting activities and mill operation, it added.

Similarly, the harvesting of mature oil palm fields in a joint venture plantation in South Sumatra, Indonesia, was also delayed due to unrest in neighbouring villages. But harvesting has yet to recommence pending clearance by the relevant authorities.

"This has resulted in the joint venture suffering losses," it noted.

Chin Teck shares closed 33 sen or 4.7% lower at RM6.67, giving it a market capitalisation of RM609.39 million.