KUALA LUMPUR: Genting Plantations Bhd’s net profit surged 83% to RM116.64mil in the first quarter March 31 against RM63.73mil in the same quarter a year ago.

       Revenue, however, dipped marginally to RM530.43mil from RM536.58mil last year, due to lower sales volume for the downstream manufacturing segment, partly compensated by the plantation segment which recorded higher revenue on the back of stronger palm product prices.

       In a statement, the plantation group said fresh fruit bunches (FFB) production in 1Q was marginally lower year-on-year as the heavy rainfall during the quarter disrupted estate operations in Indonesia, mitigated by a strong recovery in Malaysian estates against a drought-induced low production a year ago.

       The group achieved crude palm oil (CPO) and palm kernel prices of RM4,797 per tonne and RM4,114 per tonne respectively.

       Correspondingly, it said 1Q earnings before interest, taxes, depreciation, and amortisation (Ebitda), for the plantation segment improved year-on-year, on account of better margins.

       Its Ebitda from the property segment for 1Q 2022 declined year-on-year in tandem with lower sales and revenue.

       The agriculture technology (AgTech) segment narrowed its losses for 1Q in line with higher revenue achieved year-on-year while the downstream manufacturing segment turned to an Ebitda for 1Q on account of higher margins.

       Genting Plantations said its 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 product prices and the group’s FFB production.

       “For the short term, the Group expects palm oil prices to be supported by supply tightness of palm oil and other substitute oils and fats, backed by a confluence of factors such as the unresolved labour shortage in Malaysia, drought in key soybean producing areas and the protracted Russia-Ukraine conflict.

       “Meanwhile, the uncertainties surrounding Indonesia’s export policy will contribute towards volatility to palm oil prices,” it added.

       The group expects a moderate growth in FFB production for the year sustained by additional areas coming into maturity and the progression of existing mature areas into higher-yielding brackets in Indonesia.

       On the other hand, the ongoing replanting activities in Malaysia may constrain the group's production growth, it said.