KUALA LUMPUR: Genting Plantations Bhd recorded a net profit of RM63.73mil in the first quarter ended March 31, 2021, 30.19% lower than RM91.3mil in the previous corresponding quarter due mainly to a weaker performance in the downstream manufacturing segment.
Earnings per share was 7.1 sen as compared to 10.18 sen in the year-ago quarter.
Group revenue for the quarter under review was RM536.58mil, a 6% drop from RM569mil in the comparative quarter.
Genting Plantations said in a statement that its downstream manufacturing recorded an Lbitda of RM5.9mil as compared to Ebitda of RM14.1mil in the previous corresponding quarter.
“The outlook for the Downstream Manufacturing segment for the rest of this year will remain challenging due to the unfavourable palm oil-gas oil (POGO) spread and squeezed margins for its products.
“Nevertheless, the demand for refined palm products is expected to be sustained given its competitive pricing vis-à-vis other substitute soft oils,” it said.
However, the group’s plantation segment put in a stronger performance with Ebitda rising to RM155.2mil from RM118.5mil in 1QFY20.
“The Group’s prospects for the rest of the year will track the performance of its mainstay Plantation segment, which is in turn dependent principally on the movements in palm products prices and the Group’s FFB production,” it said.
It added that it expects a recovery in crop output and overall fresh fruit bunch production growth for the year, underpinned by additional mature areas and favourable age profile of its Indonesia operations.
In Malaysia however, replanting activities are likely to moderate production.
In other segments, the biotechnology business showed an improved performance with Lbitda narrowing to RM800,000 from RM3.2mil a year earlier.
The property segment recorded a lower Ebitda of RM5mil versus RM5.5mil in 1QFY20.