KUALA LUMPUR (May 23): Jaya Tiasa Holdings Bhd has swung to a loss in the third quarter ended March 31, 2018 due to lower output at both its oil palm and timber divisions.

The net loss of RM38.41 million compares with a net profit of RM27.95 million for the same period in the prior year.

This resulted in loss per share of 3.97 sen, compared with earnings per share of 2.89 sen previously, according to the group's filing with Bursa Malaysia.

Quarterly revenue came in at RM160.2 million, down 40.3% from RM268.46 million registered in the year-ago quarter.

Jaya Tiasa's slip into the red brought its cumulative nine months net profit to RM5.9 million, a stark difference compared with the RM64.69 million it posted in the same period last year.

Cumulative revenue, meanwhile, fell 11% to RM660.02 million from RM741.36 million previously.

Jaya Tiasa's oil palm division showed weaker earnings due to a 5% fall in fresh fruit bunches (FFB) production volume, which resulted in an 11% reduction in crude palm oil (CPO) output during the quarter under review.

There was also a 24% decrease in (CPO) selling price in the quarter, the group said.

Over at its timber division, the group said log production volume decreased by 80% as the timber certification is taking place.

Jaya Tiasa is banking on its remaining quarter as it foresees higher FFB and CPO production from more maturing palm age profile during the high crop season.

"We are cautiously optimistic on the recovery of CPO prices in view of the expected increase in demand of CPO during the festive season, despite concerns of growing CPO stockpile with the reinstatement of the 5% export tax," it added.

Jaya Tiasa's share price settled 1.5 sen or 1.92% down at 76.5 sen, for a market capitalisation of RM740.51 million. Year to date, the stock has declined 29%.