KUALA LUMPUR (June 23): United Malacca Bhd widened its net loss to RM61.23 million for the fourth quarter ended April 30, 2020 (4QFY20), from RM10.82 million a year earlier. This was recorded after taking into account an impairment on bearer plants of RM56.8 million.

Loss per share (LPS) stood at 29.22 sen compared with 4QFY19’s LPS of 5.16 sen.

However, quarterly revenue grew 52.74% to RM86.19 million versus RM56.43 million previously, the group said in its result filing with Bursa Malaysia today.

Overall, United Malacca said it recorded narrower plantation losses of RM4.1 million for its Malaysian and Indonesian operations compared with 4QFY19’s losses of RM13.3 million. This was achieved on the back of higher crude palm oil (CPO) prices in Malaysia and higher fresh fruit bunch (FFB) production in Indonesia.

For the full year ended April 30, 2020 (FY20), the oil palm company returned to profitability, raking in RM15.78 million in earnings compared with a net loss of RM39.03 million previously. This was contributed by a gain on disposal of non-current assets held for sale of RM103.2 million.

Earnings per share for FY20 stood at 7.52 sen compared with LPS of 18.61 for FY19.

Revenue for the period grew 44% to RM293.98 million from RM203.74 million previously.

The group has declared a second interim single-tier dividend of six sen for FY20, to be paid on Aug 26. Total single-tier dividend for FY20 is eight sen.

United Malacca’s full year performance was achieved on the back of higher unit cost of production and lower FFB production in Malaysia, and higher FFB production, improved yields and reduced transport costs in Indonesia.

The Indonesian operations, however, were dampened by low CPO prices and high unit cost of production arising from young matured area of 5,051 hectares (ha).

“The group achieved higher FFB production for the financial year ended April 30, 2020 compared with the preceding year despite the sale of four plantations with a mature area totalling 979ha during the year. We expect FFB production to increase during FY21 due to higher yields, better age profile and an increase in mature area in oil palm estates in Kalimantan, Indonesia,” it said.

Going forward, United Malacca said it remains focused on improving labour productivity and cost efficiency as well as increasing FFB yield. The group expects FY21 to be challenging due to an expected decline in market demand triggered by the Covid-19 outbreak while CPO price is likely to remain at the current level.

United Malacca closed the day flat at RM4.54. Its market capitalisation stood at RM952.35 million.