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Cepatwawasan first quarter earnings down

TheStar Thu, May 09, 2019 07:55am - 6 months ago


The plantation company announced a net profit of RM2.4mil for 1Q19, compared with RM7.2mil in the previous corresponding quarter. Consequently, its earnings per share slid to 0.79 sen from 2.34 sen previously. (The Cepatwawasan-Humana Education Resource Centre (Cherc) in Segaliud, Kinabatangan., in one of its oil palm plantations - Filepic)

The plantation company announced a net profit of RM2.4mil for 1Q19, compared with RM7.2mil in the previous corresponding quarter. Consequently, its earnings per share slid to 0.79 sen from 2.34 sen previously. (The Cepatwawasan-Humana Education Resource Centre (Cherc) in Segaliud, Kinabatangan., in one of its oil palm plantations - Filepic)

PETALING JAYA: Cepatwawasan Group Bhd ’s earnings fell 66.2% for the first quarter (1Q) ended March 31, 2019, due to lower palm oil prices.

The plantation company announced a net profit of RM2.4mil for 1Q19, compared with RM7.2mil in the previous corresponding quarter. Consequently, its earnings per share slid to 0.79 sen from 2.34 sen previously.

During the quarter in review, Cepatwawasan’s revenue fell 28.5% to RM52.4mil from RM73.3mil in the previous corresponding quarter.

In its filings with Bursa Malaysia, the group said the decreases in revenue and earnings for the current quarter in review were mainly due to decreases in the average selling prices of crude palm oil, palm kernel and fresh fruit bunch (FFB), which were down by 20%, 40% and 28% respectively.

“The current uncertainties in palm product prices pose a huge challenge to the group’s profit for financial year 2019,” Cepatwawasan explained.

“However, the group is looking forward to a better performance of the power plant segment with the completion of the replacement of the 3 Biogas engines,” it added.

During the quarter in review, Cepatwawasan’s plantation segment saw its profit fell 90% on lower average FFB selling price.

The group’s oil mill segment profit fell 13% mainly due to a lower mill oil extraction rate margin, while its power plant segment registered 33% decline in profit mainly due to a decreases in sales volume and average selling price of empty fruit bunch oil and a decrease in power sales recognition.

   

During the quarter in review, Cepatwawasan’s revenue fell 28.5% to RM52.4mil from RM73.3mil in the previous corresponding quarter.

In its filings with Bursa Malaysia, the group said the decreases in revenue and earnings for the current quarter in review were mainly due to decreases in the average selling prices of crude palm oil, palm kernel and fresh fruit bunch (FFB), which were down by 20%, 40% and 28% respectively.

“The current uncertainties in palm product prices pose a huge challenge to the group’s profit for financial year 2019,” Cepatwawasan explained.

“However, the group is looking forward to a better performance of the power plant segment with the completion of the replacement of the 3 Biogas engines,” it added.

During the quarter in review, Cepatwawasan’s plantation segment saw its profit fell 90% on lower average FFB selling price.

The group’s oil mill segment profit fell 13% mainly due to a lower mill oil extraction rate margin, while its power plant segment registered 33% decline in profit mainly due to a decreases in sales volume and average selling price of empty fruit bunch oil and a decrease in power sales recognition.








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