Glenealy 4Q net profit surges eight-fold to RM18.3m

KUALA LUMPUR: Gleneany PLANTATION []s (Malaya) Bhd net profit for the fourth quarter ended June 30, 2011 surged eight fold to RM18.3 million from RM2.05 million a year earlier, due mainly to higher production and increased crude palm oil sales.

It said on Friday, Aug 26 that revenue for the quarter jumped 85.6% to RM76.86 million from RM41.42 million a year earlier.

Earnings per share was 16.04 sen compared to 1.79 sen in 2010.

Glenealy proposed a first and final gross dividend of 15 sen per share totaling RM12.84 million.

For the financial year ended June 30, Glenealy’s net profit surged 239% to RM71.31 million from RM29.76 million a year earlier, on the back of revenue RM258.66 million compared to RM189.53 million in 2010.

Reviewing its performance, Glenealy said that in terms of segmental results, Sabah and Sarawak operations achieved operating profit of RM85.3 million and RM51.6 million respectively.

The company said it planted an additional 2,747ha of oil palm plantation in Sarawak, taking total planted area in East Malaysia to 29,346ha, of which 20,927ha had matured as at June 30.

On its prospects, Glenealy said that two years of subdued production, palm oil production had picked up strongly in the current quarter.

It said the strong production coincided with a general downturn in commodities prices due to risk aversion from concerns over the debt crisis in the EU and slower world economic growth.

It said the outlook for palm oil price was stable but under pressure due to potential increase in supplies for palm oil as well as other oilseeds.

“Palm oil is trading at a good discount of above US$100 per tonne to soyabean oil, which is encouraging additional demand that hopefully can keep a lid on palm oil stocks to prevent a further rose that will be bearish for palm oil price.

“At current prices, the performance of the group for the current financial year is expected to remain favourable,” it said.