KUALA LUMPUR: TSH Resources Bhd expects crude palm oil (CPO) price to be supported at around the current price level of RM3,700 to RM3,800 per tonne and is cautiously optimistic of achieving satisfactory performance for 2023.

       “TSH will continue to focus on reducing the unit cost of production through productivity improvement and cost efficiency with further adoption of mechanisation,” the group said in a statement.

       TSH said its net profit in the third quarter ended Sept 30 and year-to-date came in at RM39.2mil and RM93.8mil, respectively versus RM296.4mil and RM474.3mil for the corresponding periods last year due to the extraordinary divestment gains in the prior year periods.

       Divestment gains of RM301.4mil and RM386.3mil for the quarter and nine-month period last year arose from the disposals of two estates and a mill in Sabah in the first half of the year and several parcels of land in Kalimantan in the third quarter last year.

       TSH said the proceeds from these disposals went largely to repay borrowings.

       Its revenue in the third quarter rose to RM298.7mil, bringing it to RM805.6mil in the first nine months.

       As at Sept 30, TSH’s net gearing is only 0.04 times and its net asset per share stands at RM1.48.

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       “With its strong financial footing and a relatively young weighted average age of its palm oil trees at approximately 12 years, the group is well positioned to embark on a sustainable growth journey.

       “The group remains optimistic on the long term prospects of the palm oil industry and will undertake new planting at a steady pace in the coming years to progressively increase the planted hectarage for sustainable growth. Additionally, institutionalisation of ESG principles shall be a key focus of the group moving forward,” TSH said.