Subur Tiasa sinks further into the red in 2Q on lower oil palm output

-A +A

KUALA LUMPUR (March 29): Subur Tiasa Holdings Bhd's net loss further deepened to RM8.84 million in its second quarter ended Jan 31, 2017 (2QFY17) from RM1.81 million a year earlier, on lower contribution from its oil palm segment.

In a Bursa Malaysia filing today, the group reported a 25% drop in revenue to RM121.23 million from RM161.47 million in 2QFY16.

Subur Tiasa, which is a member of the Sarawak-based Rimbunan Hijau logging corporation, reported a bigger net loss of RM8.69 million for the first half of FY17 (1HFY17), compared with RM1.73 million for 1HFY16.

Its half year revenue decreased 15% to RM261.98 million from RM306.68 million a year ago.

The group said the drop in revenue earnings was primarily due to higher unit logging operational cost resulting from lower volume of logs harvested during the monsoon season.

There was also lower profit contribution from the oil palm segment as a result of lower fresh fruit bunches (FFB) production.

Moving forward, the group said it expects the oil palm plantation segment to contribute positively to its earnings. FFB production is also expected to improve with the commencement of peak crop season in the coming months, it said.

Subur Tiasa shares were not traded today. They closed at RM1.40 yesterday, giving the company a market capitalisation of RM263.37 million.