KUALA LUMPUR: United Plantations Bhd’s net profit fell 19% to RM55.8 million or 26.81 sen a share, in its first quarter (1Q) ended March 31, 2009 from RM68.9 million or 33.13 sen a share a year earlier, on lower crude palm oil and palm kernel production and depressed refining margins.
Revenue for the quarter fell 8.4% to RM207.34 million from RM226.45 million, the plantation firm told Bursa Malaysia today.
The company recommended a final dividend of 20% gross less 25% tax and a special dividend of 10% gross less tax for the year ended Dec 31, 2008, it said in separate statements.
United Plantations said its fresh fruit bunches (FFB) would be lower compared to last year as a result of the biological yield cycle where 2009 would be a resting period after a record production in 2008.
“The current global economic slowdown would affect world demand for commodities including biodiesel. Thus lower CPO and palm kernel prices are anticipated compared to the record prices achieved in 2008. The group’s result for the current financial year ending Dec 31, 2009 would be lower ... but still satisfactory,” it said.
United Plantations gained 10 sen to RM10.90 at the close of trade yesterday, with 34,700 shares changing hands.