Friday 29 Mar 2024
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KUALA LUMPUR (Feb 26): Genting Plantations Bhd's fourth quarter net profit fell 38% to RM117.69 million or 14.83 sen per share, from RM189.25 million or 24.14 sen per share in the previous corresponding quarter.

Revenue for the quarter ended Dec 31, 2017 increased 3% to RM528.42 million from RM513.41 million previously, on higher property sales and higher offtake of refined palm products and biodiesel.

However, the group's bottom line was affected by higher cost of sales and higher finance cost, resulting in the decline in net profit for the quarter, Genting Plantations said in a filing with Bursa Malaysia.

For the full financial year (FY17), net profit was slightly lower at RM337.7 million, versus RM338.21 million in FY16, while revenue jumped 22% to RM1.804 billion from RM1.480 billion.

The group proposed a final single-tier dividend of 11 sen per share for the year.

Genting Plantations said the growth in revenue was contributed by all of its segments, except for the property business.

"The plantation segment recorded a 17% year-on-year increase in fresh fruit bunch (FFB) production with improvements from both Malaysia and Indonesia buoyed by crop recovery from the impact of El Nino along with additional mature areas and an improved age profile of planted areas in Indonesia," it said.

The downstream manufacturing segment also posted higher sales of refined palm products and biodiesel. This was partly offset by the impact of a higher inter-segment adjustment for the sales of crude palm oil (CPO) by the Malaysian plantation segment to the downstream manufacturing segment.

While the property segment reported higher sales for FY17, it posted lower profit due to a different sales mix.

The biotechnology segment saw lower losses year-on-year, amid lower research and development expenditure.

Going forward, Genting Plantations said its performance will largely depend on the plantation segment, which is influenced by CPO prices and the group's FFB volume.

"The group foresees an overall FFB production uptrend in 2018 with higher output from out Indonesian segment amid additional mature areas from new planting and the new acquisition in 2017, as well as an overall better age profile," it said.

For the property segment, the focus will be on affordable housing, said the group, noting the prevailing soft market sentiments.

Meanwhile, the biotechnology segment will continue efforts for value creation, leveraging on its ongoing research and genomic milestones for the development of commercial solutions and applications.

The downstream segment will continue to leverage on its position as a major supplier in Sabah and focus on improving its capacity utilisation and market reach.

Genting Plantations' share price closed up 5 sen or 0.51% at RM9.80, giving a market capitalisation of RM7.82 billion.

 

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