KUALA LUMPUR: Genting Plantations Bhd’s net profit soared 91% to RM69.3 million in its third quarter ended September of financial year 2014 (3QFY14), from RM36.3 million a year ago. This is 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. Revenue for 3QFY14 grew 8% to RM370.5 million from RM342.5 million in 3QFY13. Earnings per share (EPS) stood at 9.1 sen from 4.79 sen.

In a filing with Bursa Malaysia yesterday, Genting Plantations attributed the improved revenue to increased contribution from the property segment. It added that its Indonesian plantation segment saw higher fresh fruit bunch (FFB) production, which offset the impact of lower crude palm oil (CPO) prices during the quarter.

While CPO prices were lower in 3QFY14, Genting Plantations said average CPO prices for the first nine months of the year (9MFY14) were 6% higher at RM2,472 per tonne from the same period a year ago. Net profit for 9MFY14 nearly doubled to RM239.6 million from RM122.7 million a year ago, while revenue climbed 9% to RM1.06 billion from RM976.2 million. EPS rose to 31.4 sen from 16.18 sen. The group’s FFB production saw 11% growth year-on-year for 9MFY14, backed by strong output growth in Indonesia, while Malaysian production saw improvement.

Genting Plantations said its earnings in 9MFY14 were also boosted by an unrealised exchange gained from the strengthening of the rupiah against the US dollar. The company also 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 year ...  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.

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

The counter closed unchanged at RM10.46 yesterday, with a market capitalisation of RM8.05 billion.

This article first appeared in The Edge Financial Daily, on November 21, 2014.