Lower FFB output, CPO price weigh on TSH Q2 earnings (9059)

by **hlk** Wed 22 Aug 2012, 19:04

KUALA LUMPUR: TSH Resources Bhd's earnings fell 59.3% to RM14.62mil in the second quarter ended June 30, 2012 from RM35.96mil a year ago due to lower fresh fruit bunches (FFB) production and lower average crude palm oil (CPO) price.
It said on Wednesday revenue declined 15.4% to RM278.98mil from RM329.94mil a year ago while earnings per share were 1.79 sen compared with 4.39 sen.
For the first half ended June 30, 2012, its earnings fell 101% to RM29.68mil from RM59.92mil in the previous corresponding period. Revenue slipped 13% to RM506.36mil from RM582.54mil.
Elaborating on Q2, 2012, the group recorded foreign exchange loss of RM5.4mil compared to a forex gain of RM5.5mil a year ago.
"The performance of our jointly controlled entity was affected in the current quarter due to competition from Indonesia oil refineries based on their advantage of export tax structure," it said.
On the palm and bio-integration business, it said in Q2, 2012, this segment registered lower pretax profit mainly due to lower average CPO price and lower FFB production arising from poor crop formation from tree stress condition after a peak performance last year.
"This condition was significantly felt in Malaysia and the effect in Indonesia was mitigated by the higher crop production arising from increase in mature plantation field in Indonesia," it said.
TSH said compared to a year ago, the low FFB supply situation in Indonesia and Malaysia also affected the capacity utilisation of the processing plant and resulted in higher processing cost and lower CPO production.
"FFB production reduced by 16% from 109,555 tonnes in Q2, 2011 to 91,672 tonnes in Q2, 2012. CPO production also reduced from 77,373 tonnes in Q2, 2011 to 62,303 tonnes in Q2, 2012.
“Average CPO price for current quarter stands at RM3,002 compared to corresponding quarter of RM3,161," it said.