KUALA LUMPUR (Nov 17): Far East Holdings Bhd's net profit dropped 27% year-on-year to RM50.4 million in the third quarter ended Sept 30, 2017 (3QFY17), from RM69.42 million, mainly due to higher operating expenses and lower share of profit from associates.

As such, the group's earnings per share for the quarter fell to 35.69 sen from 49.10 sen.

Nevertheless, the group declared a single interim dividend of 10 sen per share — comparable to the sum it announced in the same quarter last year — payable on Dec 19, bringing its year-to-date payout to 35 sen versus 25 sen a year ago.

Its income statement filed to Bursa Malaysia today showed that operating expenses jumped to RM101.26 million from RM65.69 million in the same quarter last year, while the share of profit after tax of equity accounted associates fell 56% to RM20.98 million from RM47.46 million.

These offset the 44% y-o-y revenue rise during the quarter to RM143.35 million from RM99.35 million. The improved revenue came following a 17% rise in fresh fruit bunch production and a 29% rise in crop received and processed.

It added that average crude palm oil (CPO) came in 12% higher at RM2,803 per tonne, while kernel prices rose 5% to RM2,519 per tonne — compared to RM2,493 per tonne and RM2,394 per tonne, respectively a year ago.

For its cumulative nine months (9MFY17), net profit rose 26% y-o-y to RM107.89 million from RM85.36 million, as revenue grew 40% to RM336.19 million from RM240.07 million.

On prospects, the group expects to achieve favourable results in the current year, in view of sustainable CPO prices.

Far East shares slid one sen or 0.1% to RM9.49, for a market capitalisation of RM1.34 billion.