KUALA LUMPUR (May 20): Genting Plantations Bhd (KL:GENP) reported an 11% increase in first-quarter net profit, supported by stronger fresh fruit bunch (FFB) output and improved contribution from its property division, despite broadly flat revenue and weaker crude palm oil (CPO) prices.
Net profit for the quarter ended March 31, 2026 (1QFY2026) rose to RM68.1 million from RM61.3 million a year earlier. Earnings per share increased to 7.59 sen from 6.83 sen.
Revenue edged up marginally to RM720.2 million from RM719.5 million.
No dividend was declared for the quarter.
In a filing with Bursa Malaysia on Wednesday, Genting Plantations said the plantation segment remained the group’s main earnings driver, although pre-tax profit from the division declined 22% year-on-year (y-o-y) to RM186 million in 1QFY2026, reflecting lower realised palm product prices. The group’s average CPO selling price fell 13% to RM3,617 per tonne from RM4,162 per tonne, while palm kernel prices slipped 5% to RM3,158 per tonne from RM3,311 per tonne.
The weaker pricing environment partly offset a 5% rise in FFB production to 457,000 tonnes, which the group attributed to improved cropping trends across several estates and favourable weather conditions.
Meanwhile, the property division posted a 39% y-o-y increase in pre-tax profit to RM7.9 million in 1QFY2026, helping cushion the decline in plantation earnings.
However, the downstream manufacturing segment saw pre-tax profit fall 11% y-o-y to RM5.1 million amid intense competition from Indonesian refiners, excess refining capacity and rising input costs.
Genting Plantations said palm oil prices strengthened towards the end of the quarter, tracking higher crude oil prices that boosted biodiesel demand. However, gains were capped earlier in the quarter by abundant global soybean supplies, which weighed on palm oil demand.
The group said it expects palm oil prices to remain firm in the near term, supported by elevated crude oil prices and concerns over fertiliser shortages that could affect global oilseed crop yields. Still, it cautioned that weaker economic conditions and softer demand may limit further upside.
For FY2026, Genting Plantations expects stronger harvests driven by additional harvesting areas and maturing estates entering higher-yielding profiles. However, potential El Niño conditions and fertiliser shortages remain risks to production.
Shares of Genting Plantations closed 0.4% lower at RM5.22 on Wednesday, valuing the group at about RM4.68 billion. The stock has gained about 4.2% so far this year.