KUALA LUMPUR: Genting Plantations Bhd’s net profit surged 70 per cent to RM432.22 million for the financial year ended Dec 31, 2021 (FY2021), from RM254.36 million in 2020.

       Revenue rose 25 per cent to RM3.13 billion from RM2.50 billion previously, the group said in a filing with Bursa Malaysia today.

       For the fourth quarter, its net profit doubled to RM161.64 million versus RM79.04 million a year earlier on the back of 45 per cent higher revenue of RM1.07 billion.

       The group’s improved revenue for 2021 was underpinned by stronger palm products prices, which more than compensated for the decline in fresh fruit bunches (FFB) production, and lower biodiesel and refined palm products sales volume.

       "Group FFB production for 2021 declined marginally by 3.0 per cent year-on-year, mainly attributable to the replanting activities in Malaysia, but (this was) mitigated by better harvest in Indonesia due to increased harvesting area,” it said in a press statement.

       As for its 2022 prospects, Genting Plantations said this would track the performance of its mainstay plantation segment, which, in turn, was dependent principally on the movements in palm products prices and the group’s FFB production.

       "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. Nevertheless, the export ruling may have an adverse impact on the Indonesian local palm product prices,” it said.

       The board recommended a final dividend of 4.0 sen per share for FY2021.

       "The board also declared a special single-tier dividend of 15 sen per ordinary share. Should the final dividend be approved by shareholders, total dividend (including the interim dividend of 11.0 sen) for 2021 will amount to 30 sen per ordinary share,” the company said.

       In comparison, the total dividend for FY2020 amounted to 21 sen. - Bernama