Genting Plantations Berhad reported its financial results for the second quarter and first half, registering a year-on-year decline in revenue for 2Q 2023 and for 1H 2023 owing to notably weaker palm product prices. The group recorded revenue of RM805 million for Q2 compared to the RM1.04 billion it registered in the preceding year’s quarter, as for 1H total revenue also declined from RM1.57 billion to RM1.39 billion.
Profit for Q2 declined from RM244 Million to RM77.6 million whereas for the full first half, the decline was from RM375 million to RM118 million.
The Group’s achieved crude palm oil prices in 2Q 2023 and 1H 2023 were similar at RM3,584 per metric tonne (“mt”), whilst palm kernel prices in 2Q 2023 and 1H 2023 were RM1,945 per mt and RM1,963 per mt respectively. The Group’s FFB production in 2Q 2023 and 1H 2023 increased year-on-year primarily driven by improved production in Indonesia, attributable to its favourable age profile and expanded harvesting area. This has more than compensated for the marginally lower output in Malaysia as a result of its ongoing replanting activities. EBITDA for the Plantation segment for 2Q 2023 and 1H 2023 was lower year-on-year on account of weaker palm product prices.
EBITDA for the Property segment declined year-on-year in 2Q 2023, in line with lower revenue. Notwithstanding lower revenue in 1H 2023, the segment’s EBITDA was higher year on-year attributable to the gain on disposal of investment properties.
The AgTech segment posted higher year-on-year losses for 2Q 2023 and 1H 2023 due to higher operating expenses.
The Board of Directors has declared an interim single-tier dividend of 8.0 sen per ordinary share. In comparison, the interim single-tier dividend declared for the corresponding period of 2022 amounted to 15.0 sen per ordinary share.
