KUALA LUMPUR: United Plantations Bhd’s net profit rose 43.1 per cent to RM290.93 million in the third quarter ended Sept 30, 2026 from RM203.28 million a year ago, on the back of higher production volume.
Revenue for the quarter under review climbed 6.7 per cent year-on-year to RM722.22 million from RM677.08 million last year, while profit before tax jumped 34.8 per cent to RM380.9 million.
For the nine-month period, the company’s earnings increased 4.8 per cent to RM645.58 million from RM615.92 million a year ago, on the back of 9.4 per cent higher revenue at RM2 billion.
According to United Plantations, both the plantation and refinery segments benefitted from higher production volumes of crude palm oil (CPO) and palm kernel, as well as firm selling prices.
In a filing with Bursa Malaysia, the company noted revenue for its plantation segment rose 6.1 per cent to RM1.25 billion in the cumulative nine-month period due to higher production volumes of CPO and palm kernel which increased 5.7 per cent and 10.8 per cent respectively.
The average selling price of palm kernel during the period rose 4.9 per cent to RM3,405 per tonne while CPO saw a marginal decline to RM4,251 per tonne.
Revenue from the refinery segment increased 12.1 per cent to RM1.3 billion driven by higher average selling prices.
Despite the higher revenue, the segment recorded a lower pre-tax profit of RM35.9 million, mainly attributable to timing differences between raw material hedging transactions and the delivery of finished goods.
Looking ahead, the company said one of the key factors influencing palm oil prices will be the development of Malaysian palm oil inventories, which could approach historically high levels of around four million tonnes towards year-end.
“Under normal circumstances, such elevated stocks would exert considerable downward pressure on prices.
“However, the market appears increasingly focused on the potential tightening of supply during 2027 again, a function of higher Biodiesel production and a lower production in Indonesia arising from the monster El Nino this July to October,” it said.
United Plantations added that while the current labour situation remains manageable during the seasonally lower production months, the continued freeze on the recruitment of guest workers will present serious challenges as the industry approaches its next production peak in March/April 2027.
“The group remains hopeful that the government will consider the industry’s labour requirements to help minimise field losses, safeguard production and export earnings,” it said.
The company declared a single-tier interim dividend of 30 sen per share and a special dividend of 15 sen per share for the financial year ending Dec 31, 2026 with both dividends payable on Dec 8.