KUALA LUMPUR: TSH Resources Bhd’s net profit widened to RM57.34 million in the second quarter ended June 30, 2022 (Q2 2022) from RM39.72 million in the same period last year.
In a filing with Bursa Malaysia, the company said revenue increased 38 per cent to RM424.4 million compared to RM307.4 million previously mainly due to higher revenue contributions from both the palm products segment and other segments.
"Revenue and profit for palm products segment improved for Q2 2022 compared with the corresponding periods last year despite impacted by the increase in Indonesia export levy and duty on crude palm oil (CPO),” it said.
The company said the palm products segment reported higher operating profits of RM96.1 million for Q2 2022 compared with RM75.8 million for the corresponding period last year.
"This is due to significantly higher average selling prices of CPO and palm kernel (PK), partially offset by lower sales volume achieved for Q2 2022 compared with the corresponding period last year,” it said.,
CPO recorded higher average selling prices of RM5,076 a tonne compared to RM3,441 a tonne a year ago while that for PK was at RM3,290 a tonne from RM2,277 a tonne last year.
Fresh fruit bunches (FFB) production for Q2 2022 is lower by six per cent to 239,398 tonnes compared with 255,151 tonnes in the corresponding period last year mainly due to ongoing replanting and wet weather conditions in the early part of the year in Indonesia.
On prospects, the company said despite the sharp fall of CPO price since May 2022 following Indonesia’s decision to remove the ban on palm oil export and market concern over rising palm oil stockpiles, it however appears to have stabilised in recent times and is currently hovering at around RM4,000 per tonne.
"It is anticipated that the CPO price will remain supported at current levels on the back of supply concerns arising from the prolonged Russia-Ukraine conflict and softer production outlook for soybean due to the return of La Nina in late 2022 and early 2023.
"Barring any unforeseen circumstances, the group is optimistic of achieving satisfactory performance for 2022. The board also remains optimistic on the long-term prospects of the palm oil industry,” it said. - Bernama