KUALA LUMPUR, July 27 -- United Plantations Bhd's (UP) net profit leapt 63 per cent to RM123.59 million in the second quarter ended June 30, 2020, as the group continued to boost crude palm oil (CPO) and palm kernel (PK) production amid better average selling prices compared with a year earlier.
Revenue also improved to RM294.32 million from RM270.53 million previously, the oil palm and coconut plantation group said in a filing with Bursa Malaysia today.
For the first half-year (H1), UP saw its net profit jump to RM204.78 million from RM142.87 million in the corresponding period last year.
Revenue was higher at RM613.23 million compared with RM592.80 million previously, mainly due to the increase in revenue for the plantation segment by 19.2 per cent, it said.
This was partially offset by a 6.9 per cent lower revenue from the refinery segment, the medium-sized plantation group said.
Meanwhile, H1 plantation revenue increased to RM396.6 million from RM332.8 million in 2019's corresponding period amid higher CPO and PK production by 15.6 per cent and 17.2 per cent, respectively, and better average prices -- up 13.4 per cent and 32.5 per cent, respectively.
In contrast, revenue for the refinery segment declined by 6.9 per cent to RM378.1 million in the January-June 2020 period from RM405.9 million a year earlier, mainly due to lower sales volume which eased by 18.1 per cent.
Going forward, UP said with its positive liquidity and conservative capital resources, the group believed it would be able to perform satisfactorily without requirements for asset impairments arising from the current COVID-19 pandemic.
Malaysia National News Agency
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