KUALA LUMPUR (Sept 1): MHC Plantations Bhd (KL:MHC) has declared a special dividend of 10 sen per share for the financial year ending Dec 31, 2026 (FY2026).
The special dividend will be paid on Sept 28, with an ex-date of Sept 14 and an entitlement date of Sept 15, according to the plantation group in a bourse filing on Tuesday.
For comparison, MHC paid total dividends of 25 sen per share for FY2025, comprising a 22 sen special dividend and a three sen interim dividend.
On Aug 20, MHC reported that its net profit fell 12.3% to RM10.26 million for the second quarter ended June 30, 2026 (2QFY2026), from RM11.7 million a year earlier, as earnings per share declined to 5.22 sen from 5.95 sen.
Quarterly revenue, however, edged up 0.8% to RM151.94 million from RM150.73 million.
MHC said higher average selling prices of palm products helped offset lower sales volumes, though earnings fell due mainly to weaker contributions from its plantation and oil mill businesses.
The plantation segment's profit fell 18% year-on-year to RM12.74 million from RM15.5 million, mainly due to higher production costs arising from increased fertiliser application and higher fuel costs.
Profit from the oil mill segment also declined 18% to RM6.91 million from RM8.47 million, mainly due to an 11% drop in fresh fruit bunch (FFB) processing volume, lower milling margins and a 5% decline in the oil extraction rate.
Meanwhile, power plant profit eased 5% to RM1.56 million from RM1.63 million, as power exports fell 9% amid the biomass plant operating at minimal load due to extensive wear and tear on its existing boiler and turbine.
For the quarter, MHC's average crude palm oil (CPO) selling price rose 10% year-on-year to RM4,488 per tonne, while the average selling prices of FFB and palm kernel increased 15% and 9% to RM912 and RM3,615 per tonne respectively.
The higher prices helped cushion lower production, with CPO output falling 15% to 20,929 tonnes and FFB production declining 12% to 37,690 tonnes.
For the first half ended June 30, 2026, MHC's net profit edged up 1.4% to RM21.87 million from RM21.57 million in the previous year, while revenue was broadly flat at RM275.26 million versus RM274.11 million.
The group said CPO prices are expected to remain strong for the rest of FY2026, supported by higher crude oil prices, rising biodiesel consumption and potential weather-related supply concerns.
However, it expects CPO prices to remain volatile amid geopolitical tensions in the Middle East, which have also raised operating costs, particularly for fertiliser and diesel.
MHC was the biggest gainer among constituents of the Bursa Malaysia Plantation Index in the first quarter of 2026, with its share price surging 44.55% during the three-month period.
On Tuesday, the counter closed unchanged at RM1.86, with a market capitalisation of RM365.57 million. Year to date, MHC is up nearly 38%.