KUALA LUMPUR -- Genting Plantations Bhd’s net profit for the third quarter (3Q) ended Sept 30, 2019 fell to RM17.96 million from RM23.51 million in the same quarter last year.
Revenue also declined to RM475.37 million from RM488.84 million previously, primarily due to lower contribution from its property developments, which were at their early stages of construction, it said in a filing with Bursa Malaysia today.
However, Genting Plantations said its revenue for year-to-date (YTD) 2019 climbed 14 per cent year-on-year to RM1.62 billion from RM1.42 billion, underpinned by higher volume of sales from the downstream manufacturing segment.
Meanwhile, the group’s achieved crude palm oil price in the quarter under review and YTD were RM1,968 per tonne and RM1,963 per tonne, respectively, while palm kernel price in 3Q2019 and YTD were RM1,089 per tonne and RM1,161 per tonne, respectively.
“The group’s plantation segment is expected to derive higher palm products prices for the last quarter ending Dec 31, 2019 compared with YTD 2019, on the back of an improved market outlook from an anticipated tightening of palm oil supply and increasing demand, particularly from the biodiesel mandates in Indonesia and Malaysia.
“Genting Plantations also expects its fresh fruit bunches production growth to extend into the fourth quarter of 2019 (4Q2019), supported mainly by its Indonesian operations with additional mature areas and better age profile,” it said.
The group, however, said its crop output in 4Q 2019 is expected to be moderated by the impact of the dry weather condition that beset its operations across Malaysia and Indonesia for the most part of 2019.
“In view of the prevailing soft property market in general, the property segment will focus on marketing its offerings to the broader market.
“The Premium Outlets are expected to continue performing well in 4Q2019, supported by the introduction of new tenants during the year and contribution from the third phase of Johor Premium Outlets,” it said.