KUALA LUMPUR (Oct 28): Chin Teck Plantations Bhd saw its net profit for the fourth quarter ended Aug 31, 2021 jump 20.59% to RM16.54 million from RM13.71 million a year earlier, mainly due to significant improvement in the group’s revenue. 

As such, its earnings per share was up 18.10 sen from 15.01 sen, its filing with Bursa Malaysia showed on Thursday (Oct 28). 

Quarterly revenue increased 32.17% to RM51.75 million from RM39.15 million, due to significant increases in the average selling prices of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kennel (PK), even though the sales volume decreased.

“Production of FFB was lower; however, purchase of FFB was higher. Overall, the production of CPO and PK were lower,” it said.

Chin Teck noted other expenses decreased substantially because in the previous financial year, there was an amount of RM2.45 million being impairment loss on investment in a joint venture which did not recur in the current financial year under review.

In addition, Chin Teck said the share of results of an associate and joint ventures reversed from overall loss to an overall profit, mainly due to lesser amount of losses incurred by the joint ventures engaged in oil palm plantation in Indonesia, even though the profit contributed from the associate engaged in property development decreased.

“Since previous financial years, the unrest in the surrounding villages located in the vicinity of the plantations in Lampung Province, Indonesia has caused the disruption in routine harvesting of FFB. 

“The oil palm plantations have since commenced harvesting activities and mill operations. Total area accessed is approximately 53% of the total planted area,” it said.

However, Chin Teck reiterated that harvesting of the mature fields in the oil palm plantation of the joint venture located in South Sumatera Province, Indonesia has been delayed due to unrest in the villages neighbouring the estate. 

“Commencement of harvesting is pending clearance by the relevant authorities,” it added.

For the full year, Chin Teck’s net profit rose 89.16% to RM68.07 million from RM35.99 million recorded in last year, while revenue surged 40.75% to RM182.72 million from RM129.81 million a year ago.

On prospects, Chin Teck said the average selling prices of CPO have strengthened since the end of the financial year 2021.

“[As such], the average selling prices of CPO are expected to remain strong and this would have [a] corresponding effect on the [group’s] financial performance for the financial year 2022,” it said.

Shares in Chin Teck settled unchanged at RM7.68 on Thursday, valuing the plantation company at RM701.67 million.