KUALA LUMPUR (Nov 13): Palm oil producer Johor Plantations Group Bhd (KL:JPG) said on Wednesday it is optimistic on the remaining months of the year thanks to strong prices after net profit rose 13% in the third quarter.

Net profit for the three months ended Sept 31, 2024 (3QFY2024) was RM77.10 million, boosted by higher sales volume and prices from a year earlier, an exchange filing showed. Johor Plantations also declared a second interim dividend of 1.25 sen per share, payable on Dec 17, 2024.

Average selling price of crude palm oil (CPO) was up 5.7% year-on-year to RM4,157 per tonne while that of palm kernel surged 29% to RM2,843 per tonne. That helped to lift revenue for the quarter by 18% to RM404.13 million.

“Against the backdrop of favourable CPO prices, we are optimistic of our performance for the remainder of the year,” said managing director Mohd Faris Adli Shukery, noting that the company will further improve yield, extraction rate and plant efficiency, while speeding up mechanisation.

The company also expects “additional margins” from construction of Integrated Sustainable Palm Oil Complex and investing in partnership with Japan’s Fuji Oil Group to build a refinery producing high-value specialty oils and fats, he added.

For the first nine months of the year, Johor Plantations reported a 69% surge in net profit to RM176.81 million while revenue climbed 23% to RM1.05 billion.

Delivery volume of CPO rose 20% during the period while that of palm kernel climbed 14% year-on-year. Prices of CPO were up 2.2% in Jan-Sept while that of palm kernel was 18% higher when compared to the same period in 2023, the company said.  

Shares of Johor Plantation dropped 20 sen or 14% to RM1.25 ahead of the results announcement, giving the company a market capitalisation of RM3.13 billion.