KUALA LUMPUR (Nov 23): Palm oil player TSH Resources Bhd has recorded a core profit before tax of RM60.1 million in the third quarter ended Sept 30, 2023 (3QFY2023), up 76.7% from RM34 million in the corresponding quarter last year, on the back of higher revenue.

Quarterly revenue rose 13.7% to RM298.72 million from RM262.65 million in 3QFY2022, underpinned by higher average crude palm oil (CPO) price of RM3,371 per tonne compared with RM3,234 per tonne a year ago.

The group's net profit came in at RM29.54 million in 3QFY2023, down from RM258.43 million a year ago, mainly because the previous year had recognised a hefty disposal gain of RM301.37 million, its Bursa Malaysia filing on Thursday showed. The gain was from the disposal of several parcels of land in Kalimantan in the third quarter of last year.

For the group's nine months ended Sept 30, 2023 (9MFY2023), it posted a core profit before tax of RM125.4 million, 37.1% less than RM199.5 million achieved for the same period last year due to lower average CPO price of RM3,465 per tonne compared with RM4,286 per tonne registered previously. This was reflected in lower revenue recorded during the period at RM805.69 million, down 21.4% from RM1.02 billion in 9MFY2022.

In addition, its TSH-Wilmar joint venture posted a year-to-date loss of RM6 million against a profit of RM23.2 million last year, representing a reversal of RM29.2 million.  
 
It reported a net profit of RM69.53 million for 9MFY2023 down from RM412.24 million in 9MFY2022, again largely because the year-ago period had recorded huge divestment gains, which totalled RM386.3 million, as the group also sold two estates and a mill in Sabah in the first half of the year on top of the Kalimantan plots it sold in the third quarter.

Proceeds from these disposals went largely to repay borrowings, TSH said.

Looking ahead, TSH said the group, with its strong financial footing and a relatively young weighted average age of its palm oil trees at approximately 12 years is well positioned to embark on a sustainable growth journey.
 
"The group remains optimistic on the long-term prospects of the palm oil industry and will undertake new planting at a steady pace in the coming years to progressively increase the planted hectarage for sustainable growth," TSH said.

TSH expects CPO prices to be supported at around the current level of RM3,700 to RM3,800 per tonne.

TSH shares slipped one sen or 0.99% to close at RM1 apiece on Thursday, giving it a market capitalisation of RM1.38 billion.