United Plantations

United Plantations

Postby winston » Tue Jul 28, 2020 6:51 am

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United Plantations 2Q profit up 63% on better output, palm selling prices

by Lai Ying Yi

KUALA LUMPUR (July 27): United Plantations Bhd's (UP) net profit rose 62.73% to RM123.58 million for the second quarter ended June 30, 2020 (2QFY20), from RM75.94 million a year earlier, on higher revenue and better performance posted by its plantation segment.

According to UP's bourse filing today, quarterly revenue increased 8.79% to RM294.32 million from RM270.53 million previously.

The group said the increase was mainly due to higher production and average prices achieved by its crude palm oil (CPO) and palm kernel products.

It added that due to favourable hedging positions, its refinery segment saw its profit rise about two times compared with the preceding quarter, albeit on lower sales volume, which dipped about 21.1%.

For the cumulative six months ended June 30, 2020, UP posted a total net profit of RM204.77 million, up 43.33% from RM142.86 in the same period last year. Revenue was higher by 3.4% at RM613.22 million from RM592.79 million.

Commenting on its prospects, UP said it will continue to replant areas of its older and less productive oil palm stands in Malaysia this year and emphasise on cost efficiencies and improved productivity.

The group noted that during the month of May, and especially June, the vegetable oil trade started to increase in tune with the global economies opening up, compelling markets to replenish their vegetable oil stocks.

"This increase in demand has had a supportive effect on the market pushing up prices to RM2,600 per tonne of CPO," it said.

"Based on the prices contracted under our forward sales policy and with production improving due to large areas steadily coming into maturity from our replanted areas in Malaysia, the board of directors expects that the results for the year will still be satisfactory and better than in 2019," it added.

Shares in UP closed 12 sen or 0.89% higher at RM13.54, valuing the plantation group at RM5.63 billion. Year-to-date, the stock is up 7.4%.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ing-prices
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Re: United Plantations

Postby winston » Tue Jul 25, 2023 8:22 am

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United Plantations navigates challenges amidst global uncertainties

Uncertainties of high inflation and recession fears, coupled with the ongoing Russia-Ukraine war and its continued impact on global supply chains.

“Whilst costs of energy, fertilisers, chemicals, building materials and spare parts, have come down from earlier highs, they are still above levels experienced a few years ago, resulting in our cost base increasing to its highest levels ever”.

There was a sharp recovery in prices due to significantly lower-than-expected production in Malaysia and Indonesia and with that lower stocks.

In the second quarter ended June 30, United Plantations saw its net profit fall 14% to RM159mil, or earnings per share of 38.34 sen against RM184.6mil, or 44.51 sen in the same quarter last year.

Revenue for the quarter tumbled 33% to RM470.1mil from RM701.2mil a year prior.


Source: The Star

https://www.thestar.com.my/business/bus ... ertainties
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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