KUALA LUMPUR: Genting Plantations Bhd's net profit eased 30.2 per cent to RM63.73 million in the first quarter (Q1) ended March 31, 2021 from RM91.29 million in the same quarter last year.
The company said this was due to a two per cent lower fresh fruit bunch (FFB) year-on-year (Y-o-Y), arising from production setbacks in Malaysia on compounded lagged effects of droughts in early 2019 and early 2020.
For Q1, Genting Plantations said it recorded crude palm oil and palm kernel prices of RM2,916 per tonne and RM2,243 per tonne respectively.
Reflective of the higher palm products selling prices, the Q1 gross earnings for the plantation segment improved Y-o-Y on account of better margins, it said.
Besides that, it said this was also contributed by lower revenue contribution from its property segment as well as the loss recorded from its downstream manufacturing segment.
Its revenue in the quarter decreased 5.7 per cent to RM536.58 million from RM569.04 million.
The company said its prospects for the rest of the year would track the performance of its mainstay plantation segment.
This will in turn be dependent on the movements in palm products prices and the group's FFB production.
Genting Plantations expects palm oil prices to be primarily influenced by the impact of the pandemic on global economic conditions as well as the demand and supply dynamics of palm oil and other substitute oils and fats.
"Notwithstanding lacklustre production in Q1 2021, the group expects a recovery in crop output and overall growth in FFB production for the year underpinned by additional mature areas and favourable age profile of its Indonesia operations.
"On the other hand, replanting activities are likely to moderate production from Malaysian estates," it said.