KUALA LUMPUR (Nov 12): Johor Plantations Group Bhd’s (KL:JPG) net profit for the third quarter slipped 5.4% on the back of lower palm product delivery volumes, but was supported by firmer prices.

Net profit for the three months ended Sept 30, 2026 (3QFY2026) dropped to RM100.26 million from RM106.04 million in the same period a year ago, according to a bourse filing on Thursday.

Earnings per share stood at 1.50 sen compared with 1.75 sen previously. The group declared an interim dividend of 1.5 sen per share, down from 1.75 sen declared under the same quarter a year ago, to be paid on Dec 10.

Upstream, crude palm oil (CPO) and palm kernel (PK) delivery volumes declined 16.8% and 14.7% year-on-year (y-o-y), respectively, but average CPO selling price rose 6.5% to RM4,732 per metric tonne and up 7.4% to RM3,816 per MT for PK.

Upstream revenue dropped 8.5% y-o-y to RM343.88 million, while midstream revenue dropped 5.5% to RM126.2 million.

For the nine months ended Sept 30, 2026 (9MFY2026), Johor Plantations logged a 21.5% decline in net profit to RM201.76 million from RM257.16 million a year earlier, while revenue edged down 0.9% to RM1.22 billion from RM1.23 billion.

CPO prices are expected to remain firm in the final quarter, Johor Plantations noted.

Locally delivered CPO prices during the third quarter remained relatively firm, ranging between RM4,443 per MT and RM4,687 per MT, the group said, despite the build-up of local inventory following strong production.

“For 4QFY2026, the group expects CPO prices to remain broadly range-bound, with biodiesel demand and seasonal consumption providing support, while elevated inventories may constrain significant price upside,” Johor Plantations said.  

Looking to 2027, supply-demand balance may tighten should weather-related production constraints coincide with sustained growth in biodiesel demand, it added.

Shares of Johor Plantations ended five sen or 2.86% higher at RM1.80, valuing the group at RM4.5 billion.