TSH Resources’ 2Q net profit down 80% to RM7.08m

by **Cals** Thu 27 Aug 2015, 00:26

TSH Resources’ 2Q net profit down 80% to RM7.08m

KUALA LUMPUR: TSH Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) saw its net profit tumble 80% to RM7.08 million or 0.53 sen per share for the second quarter ended June 30, 2015 (2QFY15), from RM35.38 million or 2.63 sen per share a year ago, on lower crude palm oil (CPO) prices, lower fresh fruit bunch (FFB) production and foreign exchange differences.
Revenue for 2QFY15 declined 31.7% to RM206.16 million from RM301.81 million for 2QFY14.
In a filing with Bursa Malaysia, TSH said its palm division saw lower operating profit of RM32.2 million for 2QFY15 due to lower FFB yield of 153,963 tonnes (2QFY14: 162,675 tonnes). The group also dealt with a lower average CPO price of RM2,107 per tonne in 2QFY15, compared (2QFY14: RM2,463 per tonne).
TSH said the lower FFB yield was caused by the lagged impact of drought in Kalimantan, Indonesia in 2014, while the average CPO price was dented by sustained weak demand from China and India.
For the six-month period (1HFY15), its net profit fell 84.7% to RM13.52 million or one sen per share, compared with RM87.55 million or 6.51 sen per share for 1HFY14, while revenue declined 30% to RM412.19 million from RM588.93 million.
TSH said CPO prices are likely to remain at the current RM2,000 level on China’s weak economy, and an ample supply of palm oil as well as other competitive vegetable oils.
But it remains optimistic about the long-term prospects of the palm oil industry and would continue to focus on its oil palm planting programme in Indonesia, and further expand its plantation land in Malaysia and Indonesia.

This article first appeared in digitaledge Daily, on August 26, 2015.