United Plantations Q2 net profit falls

PETALING JAYA: United Plantations Bhd’s net profit declined 22.4% to RM87.2 million in the second quarter ended June 30 from RM112.4 million in the previous corresponding quarter.
Revenue for the quarter decreased 12.8% to RM309.9 million compared with RM355.26 million in the same period last year mainly due to lower revenue from the plantations and refinery segments.
For the six months period, its net profit fell 1.8% to RM187.7 million against RM191.3 million a year ago, while revenue tumbled 13.5% to RM635.47 million from RM734.5 million previously.
On its prospects, the group said it anticipates that the production of biodiesel this year will exceed 2017.
“With mineral oil prices having recovered to above US$70 per barrel combined with lower vegetable oil prices, the case for further increases of biodiesel production is highly likely thereby putting a floor to the downtrend in vegetable oil prices.”
However, it said that any changes in policies and production of biodiesel must be monitored closely as it will have a direct impact on the vegetable oil price complex going forward.