United Plantations 3Q profit falls 61%, pays 30 sen dividend

by **Cals** Tue 26 Nov 2013, 05:08

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Monday, 25 November 2013 19:11

KUALA LUMPUR (Nov 25): United Plantations Bhd’s net profit fell 61.1% in the third quarter ended September 30, 2013 (3QFY13) from a year earlier. This came amid lower production and prices of crude palm oil (CPO) and palm kernel (PK).

Foreign exchange losses had also curbed profit. United Plantations said in a statement to the exchange today that it posted a net profit of RM39 million in 3QFY13 from RM100.3 million. Revenue declined to RM212.4 million from RM308.4 million.

The firm said "during the third quarter of 2013, the Indonesian rupiah depreciated approximately 10% against the Malaysian ringgit which has had a significant negative impact on the group’s results in the form of unrealised foreign exchange loss."

For the nine-month period (9MFY13), the group said net profit fell to RM160.8 million from RM250 million a year earlier. Revenue declined to RM669.9 million from RM879.1 million.

“The group’s CPO and PK production dropped by 10.3% and 14.3% respectively in the current period (9MFY13) from the corresponding period.

“The selling prices of CPO and PK declined by 14.9% and 28.7% respectively in the same period as a consequence of the fall in world vegetable oil prices," United Plantations said.

Higher production cost had also curbed profit. United Plantations said CPO and PK production cost rose 15.2% and 4.6% respectively from a year earlier.

Despite the lower profit, United Plantations plans to pay total dividends of 30.12 sen a share for 3QFY12.

These comprise an interim dividend of 18.75 sen and a special payout of 11.37 sen.

Looking forward, United Plantations said it expects weaker performance for FY13 compared to FY12.