This article first appeared in The Edge Financial Daily on May 25, 2017 - May 31, 2017

KUALA LUMPUR: Hap Seng Plantations Holdings Bhd’s net profit jumped 105% in its first quarter ended March 31, 2017 (1QFY17) to RM34.1 million from RM16.6 million a year ago, thanks to higher crude palm oil (CPO) and palm kernel (PK) selling prices.

Revenue climbed 38% to RM144.10 million from RM104.16 million last year, its filing with Bursa Malaysia yesterday showed.

It said its average selling price per tonne for CPO grew 38% to RM3,268 from RM2,375 a year ago, while PK fetched an average per tonne price of RM3,282, up 62% from RM2,029 previously.

It said fresh fruit bunch (FFB) production for the current quarter was also higher than 1QFY16 due to higher FFB yield, though both CPO and PK production were marginally lower as extraction rates fell due to the exceptionally wet weather conditions in 1QFY17.

On prospects, Hap Seng Plantations said though palm oil prices have recovered slightly in early May after declining in April, sentiments in the market remained subdued as weak soyoil prices and anticipated recovery in FFB production are expected to weigh on palm oil prices.

Nevertheless, it said global demand for palm oil should remain strong in the immediate term, supported by demand during the coming Ramadan month. As such, it is optimistic about achieving satisfactory results for full FY17.