KUALA LUMPUR (Nov 21): Significantly lower average selling prices and sales volume of crude palm oil and palm kernel pushed Hap Seng Plantations Holdings Bhd to a loss before tax of RM2.4 million in the third quarter ended September, from a profit before tax of RM48.4 million in the same quarter last year.

However, because of available tax benefit derived from the investment tax allowance on the group’s biogas plant, the group registered a profit after tax of RM3.6 million against last year’s quarter of RM36.4 million. 

Revenue declined 42.25% to RM65.59 million, from RM113.58 million a year ago. 

For the cumulative nine months (9MFY18), Hap Seng Plantations’ pre-tax profit and profit after tax of RM27.2 million and RM23 million respectively were lower than the preceding year's corresponding period by 77% and 73%. 

Basic earnings per share amounted to 2.88 sen, compared with the preceding year's corresponding period of 10.85 sen.

Hap Seng Plantations said the ASP of CPO and palm kernel for the current quarter was RM2,217 per tonne and RM1,827 per tonne respectively, as compared with the preceding year's corresponding quarter of RM2,765 and RM2,327. 

It anticipates palm oil prices to remain low, weighed down by high inventories amidst a seasonally high cropping season in the fourth quarter, as well as current low prices of competing vegetable oils, particularly soybean oil.