KUALA LUMPUR (Aug 28): Genting Plantations Bhd’s (KL:GENP) net profit for the second quarter ended June 30, 2024 (2QFY2024) rose 19.94% to RM85.12 million, compared to RM70.97 million over the same period a year earlier, due to higher palm product prices.

Earnings per share for the quarter rose to 9.49 sen from 7.91 sen, its bourse filing showed. Revenue dipped 6.05% to RM757.16 million from RM805.95 million, owing to lower sales volume at its downstream manufacturing business.

The group declared an interim single tier dividend of eight sen per share, to be paid on Sept 30.

According to the group, the average selling price of its crude palm oil (CPO) rose 6% to RM3,797 per tonne from RM3,584 per tonne, while the average selling price of palm kernel increased 18% to RM2,299 per tonne from RM1,945 per tonne. Fresh fruit bunch (FFB) production, however, dipped 3% to 484,000 tonnes from 497,000 tonnes.

For the six months ended June 30, the group’s net profit grew 16.56% to RM127.95 million from RM109.78 million in the same period in FY2023, despite a 1.96% dip in revenue to RM1.36 billion from RM1.39 billion.

Genting Plantations said its outlook for the rest of the year will track the performance of its mainstay plantation segment, which is in turn dependent on the price movements of palm products and FFB production.

“Moving into the third quarter of 2024, palm oil prices eased slightly due to strengthening of the ringgit against the US Dollar. Nevertheless, palm oil prices are expected to remain supported in the short term with the anticipated tightening of global palm oil supply, following weaker production prospects,” it added.

Barring any unexpected weather condition, the group anticipates its FFB production in the second half of 2024 (2H2024) to exceed its first half. Despite the expected crop recovery, full-year production is projected to be similar to or slightly lower than the previous year, Genting Plantations said.

As for its property segment, Genting Plantations said it will continue to focus on diversity in its offerings to cater to the broader market.

“The Premium Outlets is also continuously improving its tenant portfolio to elevate clientele experience and satisfaction along with value-enhancing additions such as the Jakarta Premium Outlets, which is at an advanced stage of construction,” it said.

Outlook for its downstream manufacturing segment, however, is expected to remain challenging, given the continuing stiff competition from its Indonesian counterparts and the restrictive demand for palm-based biodiesel in export markets.

Shares of Genting Plantations closed eight sen or 1.04% lower to RM5.62 on Wednesday, valuing the group at RM5.04 billion.