Wednesday 14 May 2008

United Plantations Q1 earnings up 194%

The StarOnline, Malaysia

Wednesday May 14, 2008

United Plantations Q1 earnings up 194%

KUALA LUMPUR: United Plantations Bhd’s net profit surged 194% to RM68.96mil for the first quarter ended March 31 from RM23.44mil in the previous corresponding quarter, boosted by higher output and selling prices of crude palm oil (CPO) and palm kernel.

It said in a statement on Wednesday that revenue surged 80% to RM226.45mil from RM126.11mil while earnings per share was 33.13 sen compared with 11.26 sen previously.
United Plantations said CPO and palm kernel output increased 25% and 22.3% while selling prices for CPO and palm kernel rose 47.4% and 71.8%, boosting its earnings significantly.
Its refinery’s profit contribution also increased significantly due to the 6% increase in sales volume and better margins from all products.

However, it was concerned about prospects for world oilseed production in 2008/2009 which were currently “somewhat bearish” due to the expected increase in the planted area.
“The high food prices which are causing a crisis in many developing and Third World countries may prompt governments to revise their biofuel policies. This could become a bearish factor for vegetable oil prices in general,” it said.

United Plantations also said under its forward sales policy, substantial quantities of CPO were sold forward entering 2008.