KUALA LUMPUR: Plantation company TSH Resources Bhd’s net profit for its third quarter (3Q) ended Sept 30 surged 89% to RM34.4 million from RM18.2 million a year ago while revenue rose 27% to RM273.1 million from RM214.2 million.
The company said its palm and bio-integration business continues to generate favourable results due to higher crop production arising from better yield and an increase in mature plantation area in Indonesia.
Its mill operations continue to show high efficiency to manage higher oil extraction rates, it said.
TSH said its cocoa manufacturing segment saw a lower profit due to a decline in production and the price of cocoa butter.
Losses at its wood products segment widened during 3Q to RM902,000 from RM286,000 previously on lower sales volume and the downsizing of overseas operations.
Earnings per share rose to 8.41 sen from 4.45 sen previously.
Revenue for the nine months ended Sept 30 rose 29% to RM855.6 million from RM662.2 million a year ago as net profit more than doubled to RM94.3 million from RM40.8 million.
TSH said palm oil prices are stabilising at between RM2,900 and RM3,000 and are expected to remain strong due to its inherent competitiveness, though any upside to its price may be limited by negative economic developments in Europe and the US.
“With palm oil prices maintaining at current levels and an increased (amount of) hectarage coming into maturity, the group is expected to achieve a satisfactory level of profitability,” TSH said of its prospects.
It added that it is seeking more business opportunities within South Asia to turn around its wood segment, which may be subdued by falling consumer and spending trends in Europe.
This article appeared in The Edge Financial Daily, November 18, 2011.
The company said its palm and bio-integration business continues to generate favourable results due to higher crop production arising from better yield and an increase in mature plantation area in Indonesia.
Its mill operations continue to show high efficiency to manage higher oil extraction rates, it said.
TSH said its cocoa manufacturing segment saw a lower profit due to a decline in production and the price of cocoa butter.
Losses at its wood products segment widened during 3Q to RM902,000 from RM286,000 previously on lower sales volume and the downsizing of overseas operations.
Earnings per share rose to 8.41 sen from 4.45 sen previously.
Revenue for the nine months ended Sept 30 rose 29% to RM855.6 million from RM662.2 million a year ago as net profit more than doubled to RM94.3 million from RM40.8 million.
TSH said palm oil prices are stabilising at between RM2,900 and RM3,000 and are expected to remain strong due to its inherent competitiveness, though any upside to its price may be limited by negative economic developments in Europe and the US.
“With palm oil prices maintaining at current levels and an increased (amount of) hectarage coming into maturity, the group is expected to achieve a satisfactory level of profitability,” TSH said of its prospects.
It added that it is seeking more business opportunities within South Asia to turn around its wood segment, which may be subdued by falling consumer and spending trends in Europe.
This article appeared in The Edge Financial Daily, November 18, 2011.
