KUALA LUMPUR (Feb 23): TH Plantations Bhd's net profit almost tripled to RM127.46 million or 14.42 sen per share in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM44.22 million or 5 sen per share a year ago, boosted by the sale of its wholly owned subsidiary THP Gemas Sdn Bhd for RM154 million in the current quarter.

Quarterly revenue jumped 31.5% to RM170.08 million from RM129.33 million in 4QFY15.

The group also proposed a final dividend of 6 sen per share amounting to RM53.03 million for the financial year ended Dec 31, 2016 (FY16), subject to shareholders' approval at the forthcoming annual general meeting.

For the full-year FY16, TH Plantations' net profit more than doubled to RM147.07 million or 16.64 sen per share from RM62.13 million or 7.03 sen per share in FY15, while revenue rose 23.5% to RM562.31 million from RM455.3 million the previous year.

"Despite lower production due to the prolonged effects of El Nino, we reported 24% higher revenue for the year compared with 2015, the result of hard work by the entire team in TH Plantations who had relentlessly pursued internal targets despite the challenges faced," said its chief executive officer and executive director Datuk Seri Zainal Azwar Zainal Aminuddin in a statement today.

In FY16, the group's fresh fruit bunches production declined by 8% to 731,509 tonnes, while crude palm oil (CPO) production stood at 173,258 tonnes, down 2% from a year ago.

Average CPO traded price in FY16 rose 20% to RM2,566 per tonne from FY15, while average palm kernel traded price was up 54% to RM2,403 per tonne.

"Going forward, the weak ringgit, higher crude oil prices, higher soybean oil prices and increased demand for palm oil all point towards bullish market sentiments on CPO prices. Nevertheless, with better weather conditions seen, the market also expects production to gradually improve, particularly in the second half of this year," said Zainal Azwar.

"With the expectation of improved production, prices are expected to moderate from their current levels," he added.

TH Plantations continues to be focused on optimising costs, operational efficiency and restoring sustainable production trends to benefit from future demand for palm oil.

"Through a structured development and replanting programme carried out in the past few years, the group's area planted with oil palm now spans over 60,000ha spread throughout Malaysia, at an average age of 10 years. Approximately 60% of the group's mature area is made up of young and prime estates, with more coming into maturity in the next two to three years, promising a steady revenue growth in coming years," said Zainal Azwar.

"The group's yield and oil extraction rate improvement programmes are also ongoing, while its consolidation of brownfield acquisitions is progressing well," he added.

TH Plantations shares closed up 2 sen or 1.69% at RM1.20 today, giving it a market capitalisation of RM1.06 billion.