Saturday 02 Mar 2024
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KUALA LUMPUR (Nov 20): Hap Seng Plantations Holdings Bhd's net profit for the third quarter ended Sept 30, 2023 (3QFY2023) rose 65.4% to RM37.85 million from RM22.88 million a year earlier, as it benefitted from a gain from fair value adjustments of biological assets of RM15 million as compared with a loss of RM24.2 million in 3QFY2022.

The plantation group’s earnings per share rose to 4.73 sen versus 2.86 sen in 3QFY2022.

On a quarter-on-quarter basis, Hap Seng Plantations’ net profit jumped four times from RM9.42 million in 2QFY2023, mainly attributable to lower operating expenses and fair value adjustments gains of biological assets of RM15 million.

Quarterly revenue, however, fell 9.6% to RM164.56 million from RM181.99 million a year ago, mainly due to lower average selling price (ASP) but mitigated by higher sales volume of all palm products.

In a filing with Bursa Malaysia on Monday, Hap Seng Plantations said ASP of crude palm oil (CPO) and palm kernel (PK) for the current quarter stood at RM3,924 per tonne and RM2,142 per tonne respectively — lower than the preceding year corresponding quarter of RM5,219 per tonne for CPO and RM2,543 per tonne for PK.

CPO sales volume for the current quarter at 36,726 tonnes was 18% above the preceding year corresponding quarter while PK sales volume was 25% higher at 8,167 tonnes, benefitted from higher production, it added.

However, net profit for the nine-month period ended Sept 30, 2023 (9MFY2023) declined 63.1% to RM70.68 million against RM191.46 million a year earlier due to lower ASP of all palm products and higher production costs. Revenue also fell 26.5% to RM493.28 million from RM671 million in 9MFY2022.

On prospects, the group expects its results for FY2023 to be influenced by movements in commodities prices, higher production costs and uncertainties in the global economies.

Shares in Hap Seng Plantations finished three sen or 1.69% higher at RM1.81 on Monday, valuing the group at RM1.45 billion.

Edited ByKang Siew Li
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