TH Plantations earnings slip on higher effective tax rates

PETALING JAYA: TH Plantations Bhd’s net profit fell 5.1% to RM7.2 million for the second quarter ended June 30, 2017 versus RM7.58 million in the previous corresponding period, on the back of higher effective tax rates.
Its revenue soared 17.4% from RM132.41 million to RM155.43 million.
The group recorded improved selling prices in Q2, with its average crude palm oil (CPO) selling price for the period coming in at RM2,664 per metric tonne, a 10% increase from the same period last year.
However, its average palm kernel (PK) selling price for Q2 fell 10% to RM1,987 per metric tonne as the demand for PK normalised in global markets.
TH Plantations CEO and executive director Datuk Seri Zainal Azwar Zainal Aminuddin said in a statement, the recovery in production and replenished stock levels throughout the industry have caused some downward pressure in CPO and PK prices.
“However, we remain optimistic that the prices will still remain supported by increased demand for palm oil products, particularly in view of higher soybean oil prices in the US. The palm oil outlook for the rest of the year seems optimistic, as industry players continuously look for ways to optimise costs, increase efficiency and internalise sustainable practices throughout their operations,” he noted.
TH Plantations’ first-half net profit leaped more than 42 fold from RM433,000 to RM18.4 million, with revenue rising 44.9% from RM221.92 million to RM321.48 million.
The stock closed two sen higher at RM1.12 today on some 27,700 shares done, giving it a market capitalisation of RM989.9 million.