KUALA LUMPUR (May 23): Evergreen Fibreboard Bhd's net profit for the first quarter ended March 31, 2017 (1QFY17) dropped 48.89% to RM10.54 million or 1.25 sen a share from RM20.62 million or 2.68 sen a share in the previous corresponding quarter.

The decline was mainly attributable to its Thailand operation, where log supplies were disrupted by floods in Southern Thailand resulting in higher raw material cost, though it is slightly mitigated by better foreign exchange gains in its Malaysian operations, according to the company's filing with Bursa Malaysia.

Concurrently, the logging company did not announce any dividend for the period.

Revenue rose a marginal 1.1% to RM249.5 million versus RM246.79 million in the same period last year as the group put more emphasis on higher margin products, while its Malaysian operations saw a decline in sales — also due to flooding, which disrupted supplies.

Looking forward, Evergreen Fibreboard expects a satisfactory performance as the rubber wood log supply disruption that hit Thailand, Malaysia and Indonesia has receded.

"Whilst supply has yet to fully normalise in Malaysia and Indonesia due to continuous wet weather, the situation has improved and looks to continue to improve further as the wet season spends its course," it added.

At 5pm, shares of Evergreen Fibreboard closed 1 sen or 1.1% lower at 90 sen, valuing the company at RM761.43 million.