KUALA LUMPUR: Genting Plantations Bhd expects a better fresh fruit bunch (FFB) harvest this year driven by additional harvesting areas and the progression of existing mature areas into higher yielding brackets in Indonesia.

       “Nevertheless, the upside may be constrained by adverse weather conditions coupled with the ongoing replanting activities in Malaysia,” said the group in a statement.

       Genting Plantations also said, in the near term, palm product prices are expected to be supported by the supply tightness of palm oil and other substitute oils and fats, as well as Indonesia’s recent export ruling.

       “The export ruling may have an adverse impact on the Indonesian local palm product prices,” said the group.

       As for its property segment, the group said it would continue to offer products for a broader market segment.

       It also noted that patronage and sales of the Premium Outlets, in Genting Highlands and Johor, had shown recovery since the lifting of interstate travel restrictions, although they will continue to be adversely affected until the Covid-19 pandemic has eased.

       The group’s agriculture technology (AgTech) segment will continue to unlock value by leveraging on artificial intelligence to develop optimised genomics-based next generation planting materials and biological solutions for plants and soil health to improve yields.

       For its downstream manufacturing segment, with the Indonesia’s new export ruling and increased allocation for its local biodiesel mandate, the demand for refined palm products from Malaysia is likely to be supported for the immediate term.

       Meanwhile, the outlook for palm-based biodiesel will remain challenging due to the unfavourable palm oil-gas oil spread.

       For its fourth quarter ended Dec 31, 2021 (Q4’21), the group posted a 104% year-on-year jump in net profit to RM161.64mil while revenue was 45% higher to RM1.07bil.

       For FY21, the group’s net profit jumped 69.9% year-on-year to RM432.2mil while revenue was 25% higher to RM3.13bil, underpinned by stronger palm products prices which more than compensated for the decline in FFB production as well as lower biodiesel and refined palm products sales volume.

       Genting Plantations noted that its FFB production for FY21 had declined marginally by 3% year-on-year, mainly due to the replanting activities in Malaysia but mitigated by better harvest in Indonesia due to increased harvesting area.

       The group achieved higher crude palm oil and palm kernel prices of RM3,444 per tonne and RM2,590 per tonne in FY21 respectively.

       The earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the property segment in FY21 was higher year-on-year, in tandem with higher sales.

       Meanwhile, the AgTech segment’s losses narrowed year-on-year, in line with its lower research and development expenditure.

       The Ebitda for the downstream manufacturing segment for FY21 improved on the back of better margins, which more than compensated for the lower sales volume.

       Genting Plantations has declared a special single-tier dividend of 15 sen per share, with the ex-date on March 10, and payment on March 29.

       The group also proposed a final single-tier dividend of four sen per share for FY21.

       This will bring total FY21 dividends to 30 sen compared with 21 sen in FY20.