KUALA LUMPUR (Nov 20): Genting Plantations Bhd’s (GenP) net profit soared 91% to RM69.3 million in its third quarter ended Sept 30, 2014, from RM36.3 million the previous corresponding quarter.

The sharp jump on earnings was mainly due to higher contribution from its plantations in Indonesia and higher recognition of property sales, coupled with the progressive completion of development projects during the quarter.

Also, there was pre-tax loss of RM38 million, categorised under “others”, in the previous corresponding quarter.

GenP’s revenue however, grew barely 8% to to RM370.5 million, from RM342.5 million, according to the announcement to Bursa Malaysia. The group’s earnings per share (EPS) stood at 9.1 sen per share for the quarter, compared to its previous EPS of 4.79 sen.

“The group’s revenue for the current quarter was up from the corresponding period of the previous year, boosted by increased contribution from the property segment, from higher recognition of property sales coupled with the progressive completion of development projects during the quarter,” said the group.

It added that its Indonesian plantation segment also saw higher fresh fruit bunches (FFB) production, which had offset the impact of lower crude palm oil (CPO) prices during the quarter.

While CPO prices were lower during the quarter, GenP said average CPO prices for the first nine months of the year, were 6% higher than the year before at RM2,472 per tonne.

For the nine months ended Sept 30, GenP recorded net profit of RM239.6 million, nearly double of RM122.7 million achieved in the previous corresponding period.

The group’s accumulative revenue for the period climbed 9% to RM1.06 billion, from RM976.2 million a year earlier.

During the period, the group’s FFB production saw 11% (y-o-y) growth in 9MFY14, backed by strong output growth in Indonesia, while its Malaysian production also saw moderate improvement.

GenP said its earnings in 9MFY14 were also boosted by an unrealised exchange gained from the strengthening of the Indonesian rupiah against the US dollar.

EPS for the cumulative period rose to 31.4 sen, from 16.18 sen.

Going forward, GenP said its performance for the rest of its financial year will largely depend on CPO prices, weather conditions in the major oil palm growing regions, crop production, changes in the cost of inputs, currency exchange rates and property market conditions.

“The group’s crop production for the full year remains on track to surpass the level achieved in the previous year, driven mainly by growth in Indonesia, as young areas progress into higher yielding brackets and additional plantings mature over the course of the of the year.

“Nevertheless, of late, some of the Group’s estates in Peninsular Malaysia have felt the lagged effects of the dry weather experienced in early 2014, and the impact may persist in the near-term,” it said.  

For its property segment, the group has lined up more offerings in Johor for the coming months.

GenP share price was unchanged at RM10.46 today, with a market capitalisation of RM8.05 billion.