KUALA LUMPUR: TSH Resources Bhd
, supported by strong cash flows and a solid financial position with zero net gearing, is set to expand into renewable energy while growing its plantation business organically.
TSH's net cash from operations saw a 40.4% jump to RM109.2mil in the first half of 2024 (1H24) against RM77.8mil in 1H23.
This came about after its core profit before taxation (PBT) for 1H24 surged by 39% to RM90.7mil despite a marginal dip in revenue to RM494.9mil due to persistent inclement weather, lower production costs and finance costs along with improved contribution from its associate and joint ventures.
For the second quarter ended June 30 (2Q24), TSH posted a core PBT of RM55.9mil which was 62.2% higher year-on-year and 60.6% above 1Q24 core PBT of RM34.8mil. Revenue for the period of RM252.5mil was marginally higher compared with 1Q24 and marginally lower than 2Q23.
The higher PBT for the quarter was due to lower production costs and improved performance of its associate and joint ventures.
In a statement, TSH noted the PBT for 2Q24 and 1H24 was affected by a one-off prior period depreciation charge of RM22mil which arose from the mutual termination of the remaining PT Bulungan Citra Agro Persada (BCAP) land disposal.
Coupled with the net impact of other non-core items, PBT for 1H24 was 13.2% lower at RM71mil compared to RM81.7mil for 1H23.
