KUALA LUMPUR, Aug 26 — TH Plantations Bhd posted a net profit of RM8.16 million for the second quarter ended June 30, 2020 (Q2 2020), against a net loss of RM19.15 million in the same period last year.
Revenue was higher at RM127.57 million from RM106.11 million previously.
In a filing with Bursa Malaysia, the plantations company attributed its performance to better average crude palm oil (CPO) price recorded in Q2 2020, when it rose to RM2,236 per tonne against RM1,905 per tonne in Q2 2019.
At the operational level, the group reported a gross profit of RM58.25 million for the quarter compared to a gross profit of RM960,000 in Q2 2019.
“The group's fresh fruit bunches (FFB) produced and processed for the period both grew by 5.88 per cent and 3.20 per cent, respectively, while CPO output and sales increased by 0.86 per cent and 0.62 per cent, respectively, from the same period last year,” it said.
During the quarter, its palm kernel (PK) output and sales also rose by 2.99 per cent and 3.11 per cent, respectively, compared with the same quarter last year.
Meanwhile, the average selling price (ASP) for FFB improved by 23.35 per cent at RM422.86 per tonne, while CPO’s ASP also rose by 17.34 per cent to RM2,236.10 per tonne.
It said the ASP for PK also increased by 22.96 per cent to RM1,305.84 per tonne.
“As the Covid-19 pandemic continues to affect economies worldwide, the group expects palm oil prices for the year to be influenced by the pandemic’s impact on the world edible oil market, global economic conditions and the implementation of biodiesel mandates in Malaysia and Indonesia.
“The proactive action taken by the Malaysian government to support the commodity through the 100 per cent export duty exemption for CPO from July 1-December 31, 2020, will augur well for the palm oil industry,” it added. — Bernama
