KUALA LUMPUR, March 24 — MHC Plantations Bhd recorded a lower net profit of RM2.51 million for the financial year ended December 31, 2019 (FY19) from a RM4.45 million net profit in FY18.
Revenue decreased to RM301.36 million from RM343.44 million previously due to the decrease in the selling prices of crude palm oil (CPO), palm kernel and fresh fruit bunches (FFB), it said in an amended filing with Bursa Malaysia today.
The announcement was amended due to an error in the financial year-end, and should be read as December 31, 2019 instead of December 31, 2020.
MHC Plantations said it expects a brighter outlook for 2020 in view of the significant recovery in CPO prices due to higher biofuel mandates in Indonesia and Malaysia, declining CPO inventories and anticipation of lower FFB production.
The company said it also expects better contribution from its power plant division following the successful commissioning of its Biogas Power Plant in Teluk Intan, Perak for the purpose of supplying up to one megawatt of electricity to Tenaga Nasional Bhd starting from August 8 last year, at the feed-in-tariff rate of RM0.4669 per kilowatt hour.
It also expressed optimism that it would perform satisfactorily in 2020 subject to uncertainties arising from the global outbreak of Covid-19. — Bernama
