Hap Seng Plantation saw its revenue for the current quarter come in at RM246.9 million which was 36% above the preceding year’s corresponding quarter mainly attributable to higher average selling prices realisation in spite of the lower sales volume of all palm products.
Consequently, the group’s profit before tax was at RM94.1 million, 50% higher than the preceding year’s corresponding quarter of RM62.8 million whilst profit after tax [“PAT”] was RM66.9 million, 41% above the preceding year’s corresponding quarter of RM47.4 million. Average selling price per tonne of Crude Palm Oil and Palm Kernel for the current quarter were
significantly higher at RM6,737 and RM3,769 respectively as compared to the preceding year corresponding quarter of
RM4,365 for CPO and RM2,709 for PK.
Sales volume of CPO and PK for the current quarter were 32,044 tonnes and 6,847 tonnes respectively, 10% and 14% lower than the preceding year’s corresponding quarter mainly due to lower production. Production of CPO and PK for the current quarter was lower than the preceding year’s corresponding quarter by 16% and 14% respectively due to lower fresh fruit bunches [“FFB”] production and lower FFB purchased. FFB production in the current quarter was 13% below the preceding year’s corresponding quarter, affected by lower FFB yield due to seasonal yield trend and changes in cropping patterns.
Overall, Group’s PBT and PAT for the year-to-date at RM219 million and RM168.6 million were higher than the
preceding year corresponding period by 115% and 120% respectively. The year-to-date PBT and PAT included a gain of
RM18.8 million and RM26.5 million (net of real property gains tax of RM7.8 million and reversal of deferred tax of
RM15.5 million) respectively arising from the completion of the HSP (LK) Disposal as disclosed in Note 10 of Part A.
The Group’s PBT for the current quarter at RM94.1 million was 25% lower than the immediate preceding quarter of
RM124.9 million inspite of higher revenue by 2%. The immediate preceding quarter’s operating profit included the gain
arising from the HSP (LK) Disposal of RM18.8 million as disclosed in Note 10 of Part A and a gain from fair value of
biological assets of RM8.7 million as compared to a loss of RM0.5 million in the current quarter.
Revenue in the current quarter benefitted from higher average selling price per tonne of CPO but was dampened by a lower average selling price per tonne of PK and lower sales volume of both CPO and PK as compared to the immediate preceding quarter. Average selling price per tonne of CPO was 12% higher than the immediate preceding quarter of RM6,019 whilst
average selling price per tonne of PK was 20% below the immediate preceding quarter of RM4,702. Sales volume of
CPO and PK for the current quarter were 5% and 6% lower than the immediate preceding quarter of 33,607 tonnes and
7,319 tonnes respectively
With weaker palm oil prices expected in the second half, Hap Seng expects its results for the financial year ending 31 December 2022 to be influenced by movements in commodities prices, rising production costs, uncertainties in the global economies, and the global shift from the COVID-19 pandemic to the endemic stage.
