KUALA LUMPUR: MHC Plantations Bhd saw its net profit almost halve to RM2.51 mil for the financial year ended Dec 31, 2019 (FY19) from RM4.45 mil in FY18.
Revenue decreased to RM301.36 mil from RM343.44 mil previously due to the decrease in the selling prices of crude palm oil (CPO), palm kernel and fresh fruit bunches (FFB), it said in an amended filing with Bursa Malaysia today.
The announcement was amended due to an error in the financial year-end, and should be read as Dec 31, 2019 instead of Dec 31, 2020.
MHC Plantations said it expects a brighter outlook for 2020 in view of the significant recovery in CPO prices due to higher biofuel mandates in Indonesia and Malaysia, declining CPO inventories and anticipation of lower FFB production.
The company said it also expects better contribution from its power plant division following the successful commissioning of its Biogas Power Plant in Teluk Intan, Perak, to supply up to one megawatt of electricity to Tenaga Nasional Bhd since Aug 8 last year, at the feed-in-tariff rate of RM0.4669 per kilowatt hour.
It also expressed optimism that it would perform satisfactorily in 2020 subject to uncertainties arising from the global outbreak of Covid-19. – March 24, 2020, Bernama
