KUALA LUMPUR: United PLANTATION []s Bhd's net profit for the fourth quarter ended Dec 31, 2010 rose 19.9% to RM81.88 million from RM68.29 million a year earlier, due to higher crude palm oil (CPO) palm kernel (PK) selling prices.
It said on Monday, Feb 21 revenue rose 53% to RM302.83 million from RM197.88 million in 2009. Earnings per share were 39.24 sen while net assets per share was RM8.51.
The company has proposed a final dividend of 15 sen net per share and a special dividend of 26.25 sen net per share for the year ended Dec 31, 2010.
For the financial year ended Dec 31, net profit fell 6.1% to RM264.31 million from RM281.47 million a year earlier, including to decreases in the production of CPO and PK as compared to 2009.
It also sustained RM15.96 million unrealised foreign exchange loss on its Indonesian rupiah loans to Indonesian subsidiaries due to the strengthening of the ringgit.
On its prospects, United Plantations said turbulent weather conditions experienced throughout the world had reduced agricultural production significantly during the second half of 2010 and caused tight supply positions for both soybean and palm oil stocks.
As a consequence, prices of the major vegetable oils rallied during the fourth quarter of 2010, it said.
United Plantations said the current seasonal low production of FFB in Indonesia and Malaysia was expected to sustain the palm oil prices in the shorter term, adding that palm oil production was expected to increase from March/April 2011 based on the uptrend of the biological yield cycle coupled with more favorable climate.
Weather conditions in the South American soybean growing regions have improved lately which is expected to have a bearish impact on the vegetable oil complex during the second half of this year.
United Plantations said although consumption and demand may be affected by the current unusually high vegetable oil prices, they are unlikely to dampen significantly the longer term price expectations due to an ever increasing world population and the impact of climate change that is affecting production globally.
'The group plans to replant a large area in Malaysia in 2011 in accordance with its replanting policy. Some areas in its Indonesian operations came into maturity in 2010 and more areas will be maturing in 2011.
'The Indonesian production will compensate somewhat for the crop loss from the replanted areas in Malaysia and as such the total production for the group for 2011 is expected to be better than 2010,' it said, adding that it expects the results for the FY ending Dec 31, 2011 to b be better than last year.
It said on Monday, Feb 21 revenue rose 53% to RM302.83 million from RM197.88 million in 2009. Earnings per share were 39.24 sen while net assets per share was RM8.51.
The company has proposed a final dividend of 15 sen net per share and a special dividend of 26.25 sen net per share for the year ended Dec 31, 2010.
For the financial year ended Dec 31, net profit fell 6.1% to RM264.31 million from RM281.47 million a year earlier, including to decreases in the production of CPO and PK as compared to 2009.
It also sustained RM15.96 million unrealised foreign exchange loss on its Indonesian rupiah loans to Indonesian subsidiaries due to the strengthening of the ringgit.
On its prospects, United Plantations said turbulent weather conditions experienced throughout the world had reduced agricultural production significantly during the second half of 2010 and caused tight supply positions for both soybean and palm oil stocks.
As a consequence, prices of the major vegetable oils rallied during the fourth quarter of 2010, it said.
United Plantations said the current seasonal low production of FFB in Indonesia and Malaysia was expected to sustain the palm oil prices in the shorter term, adding that palm oil production was expected to increase from March/April 2011 based on the uptrend of the biological yield cycle coupled with more favorable climate.
Weather conditions in the South American soybean growing regions have improved lately which is expected to have a bearish impact on the vegetable oil complex during the second half of this year.
United Plantations said although consumption and demand may be affected by the current unusually high vegetable oil prices, they are unlikely to dampen significantly the longer term price expectations due to an ever increasing world population and the impact of climate change that is affecting production globally.
'The group plans to replant a large area in Malaysia in 2011 in accordance with its replanting policy. Some areas in its Indonesian operations came into maturity in 2010 and more areas will be maturing in 2011.
'The Indonesian production will compensate somewhat for the crop loss from the replanted areas in Malaysia and as such the total production for the group for 2011 is expected to be better than 2010,' it said, adding that it expects the results for the FY ending Dec 31, 2011 to b be better than last year.
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