TH Plantations Bhd’s net profit for the second quarter (2Q) ended June 30, 2018, plunged to RM200,000 from RM25.76 million a year ago on the back of significant reductions in crude palm oil (CPO) and palm kernel (PK) prices for the quarter.
In a filing with Bursa Malaysia yesterday, the plantations group said average realised CPO price recorded for the quarter was RM2,275 per metric tonne, 15% drop from prices recorded in the same period last year.
Average realised PK declined 15% in the quarter to RM1,691 per metric tonne. Revenue for the quarter fell 10.7% year-on-year to RM138.56 million despite fresh fruit bunches (FFB) production being 5% higher. TH Plantations CFO Mohamed Azman Shah Ishak said the growth in FFB production in 2Q marks six straight quarters of increase in production.
“We are now entering the peak production period in the year, and the production outlook is encouraging. We are hopeful prices remain range-bound, at the very least, relieving the pressure on profit margins,” he said.