KUALA LUMPUR (Nov 27): Genting Plantations Bhd reported a 23.6% drop in its third-quarter (3QFY19) net profit to RM17.96 million, from RM23.51 million in the corresponding quarter last year, dragged mainly by weaker palm product prices, lower contribution from its property business, and losses at its biotechnology segment.

Revenue contracted a marginal 2.8% to RM475.37 million from RM488.84 million, on lower contribution from its property developments which are at their early stages of construction, the group said in a stock exchange filing today.

Revenue from its plantation and downstream manufacturing segments, however, improved year-on-year mainly on higher fresh fruit bunches (FFB) production and improved sales volume of derivative palm products.

For the cumulative nine-month period, Genting Plantations' net profit about halved to RM80.39 million from RM150.63 million a year ago, despite a 14.2% growth in revenue to RM1.62 billion from RM1.42 billion.

For the remaining quarter ending Dec 31, Genting Plantations expects its plantation segment to derive higher palm product prices on the back of an improved market outlook from an anticipated tightening of palm oil supply and increasing demand, particularly from the biodiesel mandates in Indonesia and Malaysia.

"The group expects its FFB production growth to extend into 4QFY19, supported mainly by its Indonesia operations with additional mature areas and better age profile.

"However, the group's crop output in 4QFY19 is expected to be moderated by the impact of the dry weather conditions that beset its operations across Malaysia and Indonesia for the most part of 2019," it added.

Meanwhile, for its property segment, the group said it will focus on marketing its offerings to the broader market in view of the prevailing soft property market in general.

"The premium outlets are expected to continue performing well in the fourth quarter, supported by the introduction of new tenants during the year and contribution from the third phase of Johor Premium Outlets," it added.

Shares in Genting Plantations closed six sen or 0.57% higher at RM10.60 today, bringing its market capitalisation to RM9.51 billion. The stock has gained near 12% in the past 12 months.