KUALA LUMPUR, Aug 24 — Hap Seng Plantations Holdings Bhd’s net profit for the second quarter ended June 30, 2022 (Q2FY2022) rose to RM66.9 million from RM47.42 million registered in the same quarter last year.
Revenue increased 36 per cent to RM246.86 million from RM181.07 million previously, mainly attributable to higher average selling prices realisation in spite of lower sales volume of all palm products, it said in a filing with Bursa Malaysia today.
It said the average selling price per tonne of crude palm oil (CPO) and palm kernel (PK) for the current quarter were significantly higher at RM6,737 and RM3,769 respectively as compared to the preceding year’s corresponding quarter of RM4,365 for CPO and RM2,709 for PK.
Hap Seng Plantations said sales volume of CPO and PK for the current quarter were 32,044 tonnes and 6,847 tonnes respectively, a 10 per cent and 14 per cent decrease compared with the preceding year corresponding quarter mainly due to lower production.
It said CPO and PK productions were 16 per cent and 14 per cent lower respectively than the preceding year’s corresponding quarter due to lower fresh fruit bunches (FFB) production and purchase.
“FFB production in the current quarter was 13 per cent below the preceding year corresponding quarter affected by lower FFB yield due to seasonal yield trend and changes in cropping patterns,” it shared.
Moving forward, Hap Seng Plantations said it expected the financial year ending Dec 31, 2022 results to be influenced by movements in commodities prices, rising production costs, uncertainties in the global economies and global shift from the Covid-19 pandemic to the endemic stage.
“CPO prices have softened subsequent to the lifting of the CPO export ban by the Indonesian government on May 23, 2022,” it said.
It said the prices are expected to ease further in the second half of 2022 due to weaker growth in global demand and expectations of higher palm oil supplies.
“Palm oil industry analysts expect average CPO price for 2022 to remain in the range of RM4,500 to RM5,600 per tonne supported by the tight supply situation of other vegetable oils and the wide price gaps between CPO and these oils,” it said.
It added that the higher fertiliser costs and increase in the minimum wage to RM1,500 under the Malaysian Minimum Wage Order 2022 with effect from May 1, 2022 would continue to push production costs higher. — Bernama
