Friday 29 Mar 2024
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KUALA LUMPUR (Aug 23): Hap Seng Plantations Holdings Bhd reported a 46% increase in its net profit to RM28.86 million or 3.61 sen per share for the second quarter ended June 30, 2017 (2QFY17), from RM19.79 million or 2.48 sen per share in 2QFY16.

Revenue for the quarter gained 21% to RM133.51 million from RM110.56 million a year earlier.

The company announced a first interim dividend of 5 sen per share for FY17.

In its filing with the stock exchange, Hap Seng said it benefitted from higher average selling prices and sales volume of crude palm oil (CPO).

"Average selling price per tonne of CPO and palm kernel (PK) for the current quarter were RM2,897 and RM2,142 respectively as compared to the preceding year corresponding quarter of RM2,661 for CPO and RM2,411 for PK.

"CPO sales volume for the current quarter at 39,009 tonnes was 18% higher than the preceding year corresponding quarter whilst PK sales volume was 2% higher at 8,693 tonnes," it said, adding that the higher sales volume had offset the slightly lower CPO production.

Hap Seng said CPO production fell 2% year-on-year due to marginally lower fresh fruit bunches production and lower oil extraction rate.

For the first half of the year, net profit almost doubled to RM62.97 million from RM36.44 million in the previous corresponding period.

Cumulative revenue increased 29% to RM277.61 million from RM214.72 million.

Going forward, the company said the forecast of abundant global supplies of soybean amid improved weather conditions could have a negative impact on palm oil prices.

Meanwhile, it said Malaysia's palm oil production is traditionally higher in the second half of the year, noting that production was higher than expected in July, resulting in the highest month-end inventories since April last year.

"Notwithstanding the foregoing, the group is optimistic of achieving satisfactory results for the current financial year ending Dec 31, 2017," said the company.

Hap Seng Plantations' share price closed unchanged at RM2.60, giving a market capitalisation of RM2.09 billion.

 

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