Far East Holdings’ 2Q18 net profit up at RM10.52m

by TMR

Far East Holdings Bhd’s net profit rose marginally to RM10.52 million in the second-quarter ended June 30, 2018 (2Q18) from RM10.04 million reported a year ago for the same period.
Revenue for the quarter slipped to RM96.12 million from RM101.09 million registered the year prior.
In a statement to the bourse yesterday, the oil palm grower noted fresh fruit bunches (FFB) production rose 7% for the cumulative period ended June 30 against production for the same period last year, while FFB received and processed during the period this year was 22% higher at 226,880 metric tonnes (MT) compared to last year’s 185,310 MT.
Crude palm oil (CPO) and palm kernel (PK) average selling prices were lower by 10% and 23% respectively in the current cumulative period compared to last year.
The average CPO price per MT was RM2,582 this year against RM2,880 last year, while the average PK price per MT was RM2,006 this year against RM2,608 last year.
The group also incurred a 26% increase in estate expenditure due to higher harvesting cost, higher general charges expenses, higher upkeep and cultivation cost, and higher manuring cost.
Milling expenditure rose 22% for the cumulative period due to higher material cost and purchase of inventories, higher cost of carriage outward and production cess and factory overhead, and higher depreciation and amortisation.
The group expects to achieve favourable results for the current financial year in view of sustainable CPO prices.