KUALA LUMPUR (Nov 24): United Plantations Bhd (UPB) posted an 83.6% rise in net profit to RM71.69 million for the third quarter ended Sept 30, 2014 (3QFY14), on the back of RM280.69 million revenue.

For the nine months ended Sept 30, 2014 (9MFY14), net profit increased by 27.7% to RM205.3 million, from RM160.8 million, while revenue was up 17.9% to RM789.5 million, from RM669.9 million in the previous corresponding quarter.

In its financial results announcement, UPB said its profit before tax for 9MFY14 had improved by 20.8% to RM268.8 million, due to higher crude palm oil (CPO) and palm kernel (PK) production.

It added that the better 3Q results were also attributable to PK having a significantly higher selling price, as a consequence of improvement in world vegetable oil prices.

It said that in September, average CPO price in Malaysia was RM2,457 per tonne, while Indonesia’s was RM2,343. In the previous year’s corresponding quarter, average CPO price was RM2,651 per tonne and RM2,095 per tonne in Malaysia and Indonesia respectively.

Meanwhile, average PK selling price in Malaysia and Indonesia was RM1,766 per tonne and RM1,399, respectively. In the previous corresponding period, average PK selling price stood at RM1,212 per tonne in Malaysia and RM868 per tonne in Indonesia.

 “The group’s CPO and PK production increased by 8.9% and 5.8% respectively in the current period, from the corresponding period, mainly attributable to the higher production in Indonesia,” it said.

UPB’s plantation segment makes up 91% of its profit before tax (PBT), while its refinery segment makes up the remaining 9% of its PBT.

“Whilst competition continues to increase from an expanding refining sector in Indonesia, the PBT of the refinery [segment] rose by 20.3% [to RM23.66 million] in the current period, from the corresponding period, mainly due to favourable forward hedging of refining margins,” it added.

UPB is the top loser on Bursa Malaysia today, closing 50 sen or 2.13% lower at RM23.00. This gives it a market capitalisation of RM4.78 billion.

Its share price had fallen by 21.8%, from its 13 month high of RM29.50 in July 24.