KUALA LUMPUR: Johor Plantations Group Bhd (JPG) believes crude palm oil (CPO) prices in the coming months will continue to be influenced by the production and export levels in Malaysia and Indonesia, biodiesel mandates, as well as weather and labour conditions in the region.
Over the longer term, the plantation firm expects demand for vegetable oils is to grow, but acknowledged any escalation in geopolitical tensions
could disrupt the global supply chain, thus dampening the demand for vegetable oils.
In the second quarter ended June 30, the group saw its net profit almost quadruple year-on-year (y-o-y) to RM49.7mil, as revenue also climbed 34.9% to RM360.9mil.
At the same time, net earnings for the year up to June 30 (1H24) also surged close to three times y-o-y to RM99.7mil, as turnover also rose 26.2% to RM655.8mil.
JPG attributed the good 2Q24 and 1H24 showing to increases in revenue from selling CPO and palm kernel (PK).
In a filing to Bursa Malaysia, it noted that CPO prices on average per metric tonne were 3% higher in 1H24 y-o-y, while average PK prices were even more elevated relatively at 16.4% higher compared to the same period last year.
On a quarterly basis, net profit was almost flattish, dipping fractionally from RM50mil for the three months ended March 31, despite revenue rising 22.4% from RM294.9mil.
JPG has declared a dividend of 1.25 sen per share for 2Q24, after having not declared any during the first quarter.
Barring any unforeseen circumstances, the group expects its performance for the financial year 2024 to be satisfactory.
