Wednesday, November 2, 2011

Glenealy Plantations 1Q earnings up 165% to RM19m

KUALA LUMPUR (Nov 2): Glenealy PLANTATION []s (Malaya) Bhd's earnings jumped 165% to RM19.01 million in the first quarter ended Sept 30, 2011 from RM7.41 million a year ago but it was cautious on the outlook for palm oil price.

It said on Wednesday its pre-tax profit was RM31.55 million, up 122% from RM14.20 million.'' Its revenue increased by 68.2% to RM17.67 million from RM42.60 million while earnings per share were 16.67 sen compared with 6.50 sen

Glenealy said fresh fruit bunches (FFB) production for 1QFY2012 was 89,721 tonnes. In terms of segmental results, Sabah and Sarawak operations achieved an operating profit of RM22.9 million and RM10.0 million, respectively.

The company said it planted an additional 377 ha of oil palm plantation in Sarawak, increasing total planted area in East Malaysia to 29,723 ha, of which 21,166 ha were matured as at Sep 30.

On the outlook, it said crude palm oil price broke lower to below RM3,000 per tonne during the quarter due to a combination of factors.

Glenealy said the contagion effect from the worsening debt crisis in Europe and the stalling US economy pulled prices lower across most assets classes including commodities like palm oil.

It added that a recovery in palm oil production and a change in duties in Indonesia with lower taxes on refined palm oil exports as compared to crude palm oil exports dampened market sentiment further.

'With the change in the tax structure in Indonesia, downstream companies in Malaysia will find it tougher to compete against Indonesian downstream companies as the Indonesian downstream companies will have an advantage in lower local crude palm oil price.

'We have a cautious outlook for palm oil price due to uncertainties in the global economy and the long term effect of the change in the tax structure in Indonesia on the Malaysian palm oil industry,' it said.

However, improving yields from the group's maturing plantations would enable it to achieve satisfactory results for the full year, it said.

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