KUALA LUMPUR (Aug 19): Genting Plantations Bhd's (KL:GENP) net profit for the second quarter ended June 30, 2026 (2QFY2026) fell 27% from a year earlier, dragged by lower crude palm oil (CPO) prices and an absence of disposal gain.
Net profit for 2QFY2026 declined to RM140.9 million from RM192.6 million previously, when a gain on disposal of assets of RM261.2 million was recorded.
Quarterly revenue jumped 30% year-on-year to RM996.8 million from RM767 million, the group said in a bourse filing on Wednesday.
It noted that Malaysian CPO prices peaked in April before moderating towards the end of the quarter as higher prices weighed on demand from major importing countries.
Indonesian CPO prices, meanwhile, weakened and traded at a wider discount to Malaysian CPO amid market uncertainty over the archipelago nation’s export centralisation policy.
As a result, the group’s average CPO selling price fell 1% to RM3,758 per tonne from RM3,802 a year earlier.
Genting Plantations declared an interim dividend of 10 sen per share, payable on Sept 25.
For the first six months of FY2026), the group's net profit fell 18% to RM209 million from RM253.8 million in the same period last year while revenue rose 16% to RM1.72 billion from RM1.49 billion.
Looking ahead, Genting Plantations expects palm oil prices to remain supported by the advancement of biofuel blending mandates in major producing countries, alongside firmer energy prices amid ongoing geopolitical tensions.
Nevertheless, seasonally higher production and subdued demand from key importing countries may limit further price upside, it said.
The group expects fresh fruit bunch production to maintain its positive momentum in the near term, supported by additional harvesting areas and the maturation of existing areas into higher-yielding age profiles.
“However, the increasing likelihood of El Nino conditions may pose risks to yields, although any impact is expected to be lagged,” it said.
Genting Plantations shares settled five sen or 0.9% lower at RM5.60 on Wednesday, giving the group a market capitalisation of RM5.03 billion. Year to date, the counter has gained nearly 10%.