KUALA LUMPUR: Genting Plantations Bhd posted a higher net profit of RM471.42 million for the financial year ended Dec 31, 2022 (FY2022) compared with RM432.22 million recorded a year ago.
Revenue improved marginally to RM3.19 billion from RM3.13 billion previously, underpinned by stronger palm products prices, although moderated by lower sales volume of refined palm products, the company said in a filing to Bursa Malaysia today.
However, for the fourth quarter (4Q) ended Dec 31, 2022, the group's net profit slipped to RM55.86 million from RM161.64 million a year earlier, while revenue dropped to RM791.19 million from RM1.07 billion previously.
“Group fresh fruit bunch (FFB) production for FY2022 declined marginally year-on-year mainly attributable to the disruption of harvesting and logistic activities caused by higher rainfall and lower harvesting area in Malaysia due to replanting activities during the year.
“The group achieved higher crude palm oil and palm kernel prices of RM4,100 per metric tonne (mt) and RM2,784 per mt in FY2022 respectively,“ it said.
On prospects for 2023, Genting Plantations said it will track the performance of its mainstay plantation segment, which is in turn dependent principally on the movements in palm products prices and FFB production.
“In the short term, the group expects palm oil prices to remain supported by increased demand due to widened discount against other edible oils and increased allocation for Indonesia’s biodiesel mandate, whilst incremental supply is expected to decline in line with the slow down of expansion of new plantings in recent years.
“For 2023, the group anticipates an improvement in FFB production, spurred by additional harvesting areas and progression of existing mature areas into higher yielding brackets in Indonesia.”
Meanwhile, it expects the production growth in Malaysia to be moderated by ongoing replanting activities.
The group has declared a final single‐tier dividend of 4.0 sen per ordinary share for FY2022, and a special single-tier dividend of 15.0 sen per ordinary share. - Bernama
