Chin Teck Q1 earnings halved on losses in Indonesia
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Chin Teck Plantations Bhd earnings fell 43.5% to RM5.98mil in the first quarter ended Nov 30, 2015 from RM10.61mil a year ago, partly because its associates sustained losses in their Indonesian oil palm plantations.
It said on Thursday its revenue was slightly higher at RM27.81mil from RM27.72mil a year ago due to slightly higher prices for the fresh fruit bunches (FFB).
However, the average selling price of crude palm oil (CPO) was lower despite higher prices for the FFB. It also said that a year ago, there was a gain from the sale of investment.
Also overall operating expenses were higher due to the increase in replanting expenses.
Its oil palm plantations in Lampung Province, Indonesia had to suspend harvesting due to unrest in the nearby villages.
“The plantations have commence harvesting. At end-November, the total harvested area was about 13% of the total area planted,” it said.
Earnings per share were 6.55 sen versus 11.61 sen. It declared an interim dividend of eight sen, which was similar to a year ago.
Questions & Answers
Q.What was the main reason for the significant drop in Chin Teck's Q1 earnings this year?
What was the main reason for the significant drop in Chin Teck's Q1 earnings this year?
Chin Teck's Q1 earnings were significantly impacted by losses sustained by its associates' Indonesian oil palm plantations. Also, higher overall operating expenses due to increased replanting expenses also contributed to the decrease in profit.
Q.Did Chin Teck's revenue performance also decline in the first quarter compared to the previous year?
Did Chin Teck's revenue performance also decline in the first quarter compared to the previous year?
No, Chin Teck's revenue for the first quarter was slightly higher at RM27.81 million, up from RM27.72 million a year ago. This increase was attributed to slightly higher prices received for fresh fruit bunches.
Q.What issues affected Chin Teck's plantation operations in Indonesia during the quarter?
What issues affected Chin Teck's plantation operations in Indonesia during the quarter?
Operations in Chin Teck's Lampung Province oil palm plantations in Indonesia faced a suspension of harvesting due to unrest in nearby villages. Harvesting has since recommenced, with 13% of the total planted area harvested by end-November.
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