KUALA LUMPUR (July 26): MHC Plantations Bhd posted an 80% year-on-year increase in net profit to RM16.31 million for the second quarter ended June 30, 2022 (2QFY22) from RM9.07 million.

Earnings per share (EPS) increased to 8.3 sen from 4.61 sen a year earlier, the group’s filing with Bursa Malaysia on Tuesday (July 26) showed.

Quarterly revenue also climbed 30.05% to RM180.79 million compared with RM139.01 million a year prior.

The group attributed the higher earnings for the quarter under review to higher average selling prices of crude palm oil (CPO), palm kernel, fresh fruit bunches and empty fruit bunches oil by 59%, 39%, 57% and 34% respectively.

For the six months ended June 30, the group’s cumulative net profit soared 74.25% to RM27.78 million against RM15.94 million a year ago, while cumulative revenue rose 42.07% to RM334.14 million from RM235.19 million. Cumulative EPS rose to 14.13 sen from 8.11 sen.

Moving forward, MHC Plantations expects CPO prices to remain firm in the second half of 2022 in view of supply tightness amid the prolonged Russia-Ukraine conflict.

Despite challenges from the increase in production costs and acute shortage of foreign labour in the palm oil industry, the group said it will continue to improve its operating efficiency and productivity, particularly through mechanisation.

“On the whole, the board is confident that, barring any unforeseen circumstances, the group will continue to perform satisfactorily for the financial year 2022,” the group added.

At Tuesday's noon break, MHC Plantations was trading at 91.5 sen, up one sen or 1.1%, giving the group a market capitalisation of RM178.85 million.