24 Aug, 2017
Tan Xue Ying (theedgemarkets.com)
KUALA LUMPUR (Aug 24): Far East Holdings Bhd's net profit more than tripled to RM25.05 million in its second quarter of financial year 2017 (2QFY17), from RM7.58 million in the corresponding quarter last year, thanks to improved prices and production.
For the period ended June 30, 2017, its quarterly revenue grew 26.56% to RM101.09 million from RM79.87 million registered last year.
Cumulatively, the group recorded a 209% jump in its first half (1HFY17) net profit to RM49.23 million from RM15.93 million a year ago, while its revenue rose 37.34% to RM193.28 million from RM140.72 million.
In a filing with Bursa Malaysia, Far East said the stronger 1H earnings on a year-on-year comparison had several contributing factors, including the higher average crude palm oil (CPO) and palm kernel prices, which increased 19% and 16% respectively during the period under review.
Its fresh fruit bunches production was also up 18% at 154,629 metric tons from 131,135 metric tons.
Contribution from the share of profits from its associate companies, namely Prosperly Palm Oil Mill Sdn Bhd and Future Prelude Sdn Bhd, grew three-fold and two-fold respectively.
Far East cited 16% lower estate expenditure from its manuring programme.
Moving forward, the group expects to achieve "favourable result in view of the sustainable CPO prices".
Shares in Far East were not traded today. The counter last closed 20 sen or 2.2% lower at RM8.90, for a market capitalisation of RM1.26 billion.