United Plantations 3Q net profit up 3%

United Plantations 3Q net profit up 3%
Tags: United Plantations

Written by Chong Jin Hun
Monday, 16 November 2009 18:14

KUALA LUMPUR: United PLANTATION []s Bhd's net profit rose 2.7% to RM92.37 million in the third quarter (3Q) ended Sept 2009, from RM89.95 million a year earlier, although revenue fell as palm oil production declined amid less demand and lower prices for the commodity.

In a statement to Bursa Malaysia today, the company said it also registered lower profit margins for its refinery operations, and RM10.2 milllion worth of provisions for impairment. United Plantations 3Q revenue dropped 25.6% to RM223.71 million from RM300.77 million.

Cumulative nine-month net profit fell 10.5 % to RM213.18 million from RM238.31 million while revenue was down 20 % to RM618.8 million from RM773.83 million.

Looking ahead, United Plantations said its palm oil output was expected to be lower this year compared with last year's record production. As such, its financial performance for the current financial year ending Dec 31, is anticipated to be lower compared to the year before.

The company is proposing an interim dividend of 20% per share less 25% tax or 15 sen net per share for the year ending Dec 31.