TH Plantations back into the black in Q1

PETALING JAYA: TH Plantations Bhd (THP) posted a net profit of RM11.2 million in the first quarter (Q1) ended March 31, 2017 from a net loss of RM7.15 million in the same period last year, on the back of RM166.05 million revenue.
Revenue grew 85% from the corresponding period last year on the back of a recovery in production of fresh fruit bunches (FFB) and crude palm oil (CPO) and higher commodity prices.
In a statement today, THP said it posted a 17% growth in FFB production and a 42% increase in CPO production, driven by improved weather conditions as well as initiatives to increase mill utilisation via additional purchase of FFB from external suppliers.
For Q12017, the FFB and CPO produced stood at 162,885 metric tonnes and 41,963 metric tonnes respectively, it noted.
The group said it also recorded improved selling prices, supported by stronger commodity prices seen in Q12017.
"We are encouraged to see that the industry has started seeing improved production, THP included, and we hope that the effects of past years' weather anomalies will completely taper off by the second half of the year," its CEO and executive director Datuk Seri Zainal Azwar Zainal Aminuddin said.
However, he said the recovery in production and replenished stock levels will inevitably cause some downward pressure in CPO and palm kernel prices.
Nevertheless, Zainal said the group is optimistic that the prices will still remain supported by increased demand for palm oil products, particularly in view of the upcoming Ramadhan month, and encouraging currency rates.
He said the group continues to focus on optimising costs, operational efficiency and restoring sustainable production trends to benefit from future demand for palm oil.