KUALA LUMPUR, Nov 27 2019 : TH Plantations Bhd’s net loss widened to RM40.01 million for the third quarter ended Sept 30, 2019 against RM22.52 million recorded in the same period a year ago.
The loss was attributable to the impairment for plantation assets identified for divestment this year and finance cost incurred by the group, amounting to RM53.88 million and RM20.04 million respectively.
Revenue for the quarter stood at RM136 million, a decline of three per cent compared with the previous year.
There were no dividends declared or paid during the third quarter ended Sept 30, 2019.
“Overall production for the industry improved in January – September 2019 compared to the same period last year. However, prices of palm oil commodities have remained low, thus increasing pressure on industry profitability,” the company said in a filing with Bursa Malaysia.
For the first nine months of 2019, production increased by 9.30 per cent. There were some bearish elements in crude palm oil (CPO) prices such as an increase in stock by 11.34 per cent (on average) and higher import by 44.30 per cent.
The company is optimistic of an upward trend in prices as a result of global concern on lower supply of CPO arising from adverse weather in Indonesia, poor input of fertiliser and demand in the enforcement of higher biodiesel mandates in Indonesia and Malaysia.
“Besides biodiesel mandates, demand for palm oil from China is also expected to rise due to competitive CPO price against substitute oils and ongoing US-China trade war.
“The group anticipates stronger production as well as improved operational efficiencies in financial year 2019. However, the group’s performance is also highly contingent on palm oil commodity prices which are expected to remain largely subdued at the current level,” it added. – Bernama