Genting Plantations' Q2 profit slides 26.8pct to RM141mil

KUALA LUMPUR: Genting Plantations Bhd's second quarter net profit slipped 26.8% to RM140.92 million, down from RM192.57 million a year earlier, as lower crude palm oil (CPO) prices weighed on results, the company said. Prices peaked in April before falling towards the end of the quarter, with major importing nations rationing demand amid elevated prices.

Indonesian CPO prices weakened, with a wider discount to Malaysian prices, due to market uncertainty over Indonesia's export centralisation policy. The group's CPO prices were slightly lower year-on-year in Q2 compared to the first half of 2025, when prices were higher due to tighter export supplies expectations. The company's revenue for the quarter rose to RM996.79 million from RM766.99 million a year ago, driven by improved sales volumes in the downstream manufacturing segment and higher fresh fruit bunch (FFB) production.

The six months to June 30, 2026, saw net profit fall to RM208.98 million, while revenue climbed to RM1.72 billion from RM1.49 billion a year prior. Property segment earnings were higher due to increased works, while AgTech segment earnings improved from additional seed sales. The group's 2026 outlook hinges on the performance of its main plantation segment, which depends mainly on palm product prices and FFB production.

The company expects palm oil prices to be supported by biofuel mandates and higher energy prices, but seasonally higher production and subdued demand could curb further price gains. The company also declared an interim dividend of 10.0 sen per share.