KUALA LUMPUR (July 20): United Plantations Bhd net profit for the second quarter ended June 30 (2QFY22) grew 36% to RM184.63 million from RM135.79 million a year ago, amid elevated crude palm oil (CPO) prices.

Revenue for the quarter under review rose 46% year-on-year to RM701.26 million from RM481.87 million in 2QFY21, according to the group’s filing with Bursa Malaysia.

According to its filing with the bourse, its plantation segment saw a 37% jump in revenue contribution as CPO and palm kernel (PK) prices rose 33% and 57% respectively during the period.

For the first half of this year, United Plantations’ net profit grew 16% to RM244.33 million from RM210.61 million in the previous corresponding period, while revenue rose 53% to RM1.34 billion from RM881.52 million over the same period.

Moving forward, the group said labour shortages remain the primary risk for the remainder of 2022.

“If the government does not provide an urgent yet safe avenue to recruit guest workers, it will become impossible to avoid further crop losses in 2022, as the acute labour shortages have gone beyond the ‘breaking point’ for many plantation companies,” it said.

“With significant uncertainties related to consequences of the Russia-Ukraine war and the unresolved situation of the chronic labour shortages faced by Malaysia, it is difficult to predict the results for 2022,” it added. 

However, based on the current palm oil prices and the company’s ability to minimise significant crop losses so far, in spite of the acute labour shortages, the group expects that the results for the year to be “satisfactory” and better than in 2021.

Shares of United Plantations closed 10 sen or 0.7% lower at RM14 per share on Wednesday (July 20), giving it a market capitalisation of RM5.83 billion.