source: [thestar online]
TSH Resources Q3 earnings surge 409% to RM83.2m
KUALA LUMPUR: TSH Resources Bhd’s net profit surged 409% to RM83.27mil in the third quarter ended Sept 30, 2013 from RM16.34mil a year ago, boosted by higher crop production and gain on sale of its stake in Pontian United Plantation Bhd.
TSH said on Tuesday its profit before tax (PBT) jumped 250% to RM76.1mil from RM21.8mil a year ago.
However, it said that its PBT would have been RM115.1mil, after excluding the non-cash and unrealised exchange translation loss on foreign currency denominated borrowings arising from its significant oil palm plantation investment in Indonesia.
Its revenue slipped 15.7% to RM219.36mil from RM260.48mil. Earnings per share were 9.73 sen compared with 1.98 sen.
TSH’s gross profit margin rose to 32.4% in 3Q13 from 23.5% in the previous quarter due to improved operational efficiency. Its gross profit margin improved despite a lower average crude palm oil (CPO) price of RM2,239 in the quarter compared to RM2,692 a year ago.
The company’s focus on managing overall production costs resulted in an improvement in gross profit margin.
“It is envisaged that production unit cost will improve further as the company record higher FFB production and yield, when more young plantations approach full maturity and achieve peak yield age,” said TSH.
Its fresh fruit bunches (FFB) production increased 26% and 34% for the current quarter and in the nine-month period ended Sept 30, 2013.
For the nine months, its earnings jumped 161.7% to RM120.44mil from RM46.02mil in the previous corresponding period. Its revenue slipped 3.7% to RM738.08mil from RM766mil.
TSH chairman, Datuk Kelvin Tan said that the CPO price improved recently on concerns of lower output and lower inventory level.
“With the expectation of new requirement for biodiesel to use 7% palm oil in Malaysia, tightening of biodiesel mandate to cut gas/oil imports in Indonesia and other favourable demand and supply conditions, the expected price improvement will augur well for us.
“We expect our FFB production to increase significantly in 2013. We believe our company can expect to achieve improved profit in the coming quarters,” he added.
Tan said TSH had been aggressively rolling out new oil palm planting in Indonesia, and exploring plantation expansion opportunities in Malaysia.
He added the company would continue to do the same as TSH is optimistic on the long term prospects for the palm oil industry.
