KUALA LUMPUR: United PLANTATION []s Bhd posted net profit of RM86.09 million in the first quarter ended March 31, 2011, up 76% from RM48.90 million a year ago and it expects the current financial year results to be better, boosted by more replanting.
It said on Monday, May 16 revenue increased by 51.9% to RM278.38 million from RM183.21 million. Earnings per share were 41.37 sen compared with 23.5 sen.
United Plantations said profit before tax surged by 74.2% to RM112.4 million from RM64.5 million due to higher production of CPO and PK by 15.5% and 11.2% for the current quarter. It said this was mainly due to newly mature fields coming into production from the Group's estates in Indonesia.
It added the earnings were also boosted by the significant improvement in the selling prices of CPO and PK by 42.8% and 93.7% respectively in 1QFY2011 from a year ago.
It declared a final dividend of 20% per share or 15 sen net per share and a special dividend of 35% per share or 26.25 sen net per share. The dividends will go ex on June 30.
On the outlook, United Plantations said palm oil production in Malaysia and Indonesia was expected to recover in 2011 based on the recovery in the biological yield cycle after a pronounced set back in 2010.
Soybean production in South America is expected to reach record levels owing to favourable weather conditions.
These factors have a bearish impact on the vegetable oil complex, as already seen in the prices of vegetable oils which have adjusted significantly from the highs enjoyed during the later part of 2010 and the early 2011. High prices of CPO have dampened the world demand to a certain extent.
It also announced 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 above that in 2010.
'As a result of the above, the directors are of the opinion that the group's results for the current financial year ending 31 December 2011 should be better than last year,' it said.
United Plantations also said while it remained committed to the expansion into Indonesia, it decided to focus on completing and consolidating the first phase of its development in Indonesia before embarking on the second phase of expansion.
'Upon completion of the first phase, about 10,000 hectares of palms will have been planted and about 5,500 hectares of permanent conservation areas established,' it said.
It also said upon the issuance of the new spatial planning map for Central Kalimantan''and obtaining the development''permits, it'' estimates to be able to plant up an additional 5,000 hectares of land with oil palms under its second phase of development.
'The overall area which will be planted up with oil palms after completing''phase 2 will therefore amount to 15,000 hectares, based on our current land concessions, which is a reduction from''the 19,000-20,000 hectares initially anticipated.
It said on Monday, May 16 revenue increased by 51.9% to RM278.38 million from RM183.21 million. Earnings per share were 41.37 sen compared with 23.5 sen.
United Plantations said profit before tax surged by 74.2% to RM112.4 million from RM64.5 million due to higher production of CPO and PK by 15.5% and 11.2% for the current quarter. It said this was mainly due to newly mature fields coming into production from the Group's estates in Indonesia.
It added the earnings were also boosted by the significant improvement in the selling prices of CPO and PK by 42.8% and 93.7% respectively in 1QFY2011 from a year ago.
It declared a final dividend of 20% per share or 15 sen net per share and a special dividend of 35% per share or 26.25 sen net per share. The dividends will go ex on June 30.
On the outlook, United Plantations said palm oil production in Malaysia and Indonesia was expected to recover in 2011 based on the recovery in the biological yield cycle after a pronounced set back in 2010.
Soybean production in South America is expected to reach record levels owing to favourable weather conditions.
These factors have a bearish impact on the vegetable oil complex, as already seen in the prices of vegetable oils which have adjusted significantly from the highs enjoyed during the later part of 2010 and the early 2011. High prices of CPO have dampened the world demand to a certain extent.
It also announced 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 above that in 2010.
'As a result of the above, the directors are of the opinion that the group's results for the current financial year ending 31 December 2011 should be better than last year,' it said.
United Plantations also said while it remained committed to the expansion into Indonesia, it decided to focus on completing and consolidating the first phase of its development in Indonesia before embarking on the second phase of expansion.
'Upon completion of the first phase, about 10,000 hectares of palms will have been planted and about 5,500 hectares of permanent conservation areas established,' it said.
It also said upon the issuance of the new spatial planning map for Central Kalimantan''and obtaining the development''permits, it'' estimates to be able to plant up an additional 5,000 hectares of land with oil palms under its second phase of development.
'The overall area which will be planted up with oil palms after completing''phase 2 will therefore amount to 15,000 hectares, based on our current land concessions, which is a reduction from''the 19,000-20,000 hectares initially anticipated.
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