KUALA LUMPUR: TH Plantations Bhd's net profit rose 67 per cent to RM39.76 million in the third quarter (Q3) ended September 30, 2021 from RM23.86 million a year ago. 

The company's revenue rose 23 per cent to RM205.87 million compared to the same period a year ago. 

"The better earnings in the third quarter were mainly due to higher average selling price for the palm products," TH Plantations said in a statement.

"The average selling price for crude palm oil (CPO), fresh fruit bunches (FFB) and palm kernel (PK) improved against the corresponding period last year by 43 per cent at RM 3,640 per tonne, 80 per cent at RM 912 per tonne and 73 per cent at RM 2,453 per tonne respectively," it said. 

At operational level, TH Plantations said it continued to perform better, with a gross profit of RM89.37 million compared to a gross profit of RM76.60 million for the same quarter a year ago. 

"The company continues its effort to improve its cost efficiencies and productivities by optimising its mechanisation efforts to reduce the impact of labour shortage and to ensure positive development going forward."

TH Plantations remains cautious on the influence of the post Covid-19 pandemic on the world's economy and the palm oil markets. 

"However, we are optimistic that the current level of selling prices for palm products will be maintained throughout the remainder of the year due to low production season, labour shortage as well as low inventory level of palm oil in Malaysia.

"Based on the current favourable palm oil products prices and barring unforeseen circumstances, the company expects its financial performance for the financial year ending December 31, 2021 will be better than 2020," it added.