25 Aug, 2022
KUALA LUMPUR (Aug 24): Far East Holdings Bhd's net profit more than doubled to RM70.18 million for the second quarter ended June 30, 2022 (Q2 2022) from RM32.54 million, fuelled by firmer crude palm oil (CPO) and palm kernel (PK) prices, as well as higher fresh fruit bunch (FFB) production.
In a filing with Bursa Malaysia, the oil palm plantation company said its revenue also jumped to RM242.36 million from RM153.72 million previously.
It said during the quarter under review, the average CPO price was higher by 69% per tonne, while the average PK price grew 33% per tonne compared with the same period last year.
FFB production increased 2% from Q2 2021, it said.
For the cumulative six-month period ended June 30, 2022, Far East saw its net profit soar to RM127.47 million against RM59.4 million previously, while revenue surged to RM429.43 million from RM273.47 million before.
On prospects, the group expects its performance for the current financial year to continue to be challenging due to rising operation costs, higher wages, volatility of CPO prices, and labour shortages.
"FFB production is expected to be stable in 2022, and the group's financial result for 2022 is anticipated to be higher than the preceding year in view of higher CPO prices," it said.