KUALA LUMPUR (April 25): Chin Teck Plantations Bhd (KL:CHINTECK) said on Friday its second quarter net profit fell 15.6% from a year earlier, amid lower palm oil production and a foreign exchange loss.

The net profit for the three months ended Feb 28, 2025 (2QFY2025) was RM17.56 million compared with RM20.8 million previously, according to the company's bourse filing on Friday. Earnings per share dropped to 19.22 sen from 22.77 sen.

The oil palm planter's earnings were also weighed down by losses from its Indonesian joint ventures, amid disruptions to harvesting activities.

Chin Teck said only 53.61% of its planted area in Indonesia was accessible during the quarter due to unrest in neighbouring villages, which disrupted harvesting and mill operations.

Revenue for the quarter rose 15.9% to RM59.43 million from RM51.26 million in 2QFY2024, supported by higher average selling prices of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel (PK), which offset lower sales volume and higher cost of sales.

The average FFB price rose 36.3% year-on-year to RM1,070 per tonne. CPO price increased 29.3% to RM4,915 per tonne, while the average PK price jumped 72% to RM3,699 per tonne.

“The current trend in average selling prices of CPO is expected to remain”, Chin Teck said, while anticipating satisfactory plantation results for FY2025.

On a quarter-on-quarter basis, Chin Teck’s net profit dropped 46.1% from RM32.55 million in 1QFY2025, with revenue down 18.77% from RM73.15 million.

No dividend was declared for the latest quarter.

The plantation company had on Nov 28, 2024 declared a special dividend of seven sen per share plus a first interim dividend of eight sen per share for FY2025. The dividends were paid on Dec 27. It is worth noting that the dividend announcement came prior to the conclusion of its 1QFY2025.

For the first half of FY2025, Chin Teck’s net profit increased 19% to RM50.11 million from RM42.13 million in the previous corresponding period. Revenue rose 15.9% to RM132.58 million from RM114.44 million.

Shares of Chin Teck closed nine sen or 1.11% higher at RM8.20, giving the company a market capitalisation of RM749.18 million.