Lang
KUALA LUMPUR — Sabah-based plantation group Hap Seng Plantations Holdings Bhd reported a sharp jump in second-quarter earnings, supported by higher average selling prices of crude palm oil (CPO) and stronger sales volumes.
In a filing with Bursa Malaysia, the group said net profit for the three months ended 30 June 2026 doubled to RM39.32 million from RM19.66 million a year earlier. Revenue climbed 29.2% to RM201.73 million from RM156.11 million, while earnings per share rose to 4.92 sen from 2.46 sen in the corresponding quarter of 2025.
The average selling price (ASP) of CPO rose 16.9% to RM4,630 per tonne from RM4,260, while palm kernel prices increased 7.3% to RM3,723 per tonne from RM3,471.
The company noted that CPO and palm kernel production in the quarter was marginally lower, owing to a reduction in fresh fruit bunches (FFB) purchased and lower FFB output, affected by seasonal yield trends and cropping pattern changes. However, higher extraction rates helped offset the decline. As a result, CPO sales volume rose 23% to 37,388 tonnes, while palm kernel sales volume edged up to 6,847 tonnes, mainly due to delivery timing.
The board declared an interim dividend of two sen per share, payable on 23 September.
For the first half of FY2026, Hap Seng Plantations' net profit rose 16.9% to RM49.29 million from RM42.15 million a year earlier, while revenue increased 17.5% to RM394.17 million from RM335.53 million. Cumulative earnings per share rose to 6.16 sen from 5.27 sen.
The group said it had changed the way it values its biological assets starting January 2026, resulting in a one-time loss from fair value adjustments of RM29 million before tax and RM22 million after tax. Excluding this adjustment, profit after tax for the half-year would have been 69% higher than the previous year.
Looking ahead, Hap Seng Plantations expects the second half of the year to remain influenced by palm oil production levels, commodity price movements and uncertainties in the global economic environment. The group anticipates CPO prices to remain resilient, supported by elevated crude oil prices amid geopolitical tensions in the Middle East, higher biodiesel mandates in Indonesia and Malaysia, and palm oil's price discount against competing edible oils.
Hap Seng Plantations' share price closed two sen, or 0.79%, higher at RM2.54 on Wednesday, giving the company a market capitalisation of RM2.03 billion.
Source: The Edge Malaysia