KUALA LUMPUR (Nov 20): Hap Seng Plantations Holdings Bhd saw its net profit for the third financial quarter ended Sept 30, 2017 (3QFY17) fall 39% to RM25.9 million from RM42.7 million a year ago on lower sales volume of crude palm oil (CPO) and palm kernel (PK).

CPO sales volume in 3QFY17 was at 33,376 tonnes — 32% lower than the preceding year's corresponding quarter whilst PK sales volume was 19% lower at 8,331 tonnes. The lower sales volume of CPO and PK were mainly due to lower production, according to the filing to Bursa Malaysia.

Sabah-based Hap Seng Plantations also attributed its drop in profitability to lower average selling price realization of PK but this was mitigated by higher average selling price realization of CPO.

Average selling price per tonne of CPO and PK for the current quarter were RM2,765 and RM2,327 respectively compared with the preceding year's corresponding quarter of RM2,644 for CPO and RM2,669 for PK.

Revenue for 3QFY17 came in 29.1% lower at RM113.58 million from RM160.17million a year ago.

For the nine-month period ended Sept 30, 2017 (9MFY17) Hap Seng Plantations’ net profit grew by 12.3% to RM88.87 million. Revenue for 9MFY17 was 4.3% higher at RM391.19 million.

Earnings per share for 9MFY17 was also higher at 11.11 sen, from 9.9 sen in 9MFY16.

Hap Seng Plantations shares were unchanged at RM2.58 today for a market capitalisation of RM2.06 billion.