29/02/2024 (Malaysia) - Genting Plantations Bhd reported a decrease in net profit to RM253.48 million for the fiscal year ending December 31, 2023, from RM471.42 million in the previous fiscal year. The company also experienced a drop in revenue, down to RM2.96 billion from RM3.18 billion, according to its filing with Bursa Malaysia.
The lower financial performance was attributed to weaker palm oil prices, despite an increase in fresh fruit bunch (FFB) production. The company noted that FFB production for the fiscal year 2023 increased year-on-year, driven by the encouraging age profile of its estates in Indonesia and expanded harvesting areas.
However, production in Malaysian estates saw a slight decline due to ongoing replanting activities. Genting Plantations stated that the outlook for 2024 would largely depend on the performance of its primary plantation segment, which in turn is influenced by palm oil price movements and the company's FFB production.
In the short term, the company expects palm oil prices to be supported by limited global supply, weaker production prospects, and unpredictable weather conditions. Other contributing factors include the increasing demand for biodiesel globally, fueled by higher biodiesel mandates.
For the fourth quarter ending December 31, 2023, the company's net profit rose to RM63.19 million from RM55.85 million in the same quarter of the previous year, while revenue increased to RM800.45 million from RM791.18 million.