Genting Plantations expects prices to remain firm

PETALING JAYA: Genting Plantations Bhd says its outlook for the rest of the year will hinge on the performance of its core plantation segment, which depends largely on palm product prices and the group’s fresh fruit bunch (FFB) production.

“The group anticipates palm product prices to remain firm in the near term, supported by tight palm oil supply and resilient biodiesel demand, underpinned by ongoing biodiesel mandates and policies in key markets.

“Nonetheless, subdued demand due to its unfavourable price spread against other edible oils and the absence of festive-driven demand, amid ongoing uncertainties surrounding trade policies, may limit the price upside,” Genting Plantations said in a statement.

The group expects FFB production to ease in the remaining months of the year after peaking in October across its Malaysian and Indonesian estates. It anticipates full-year 2025 output to be marginally lower year-on-year.

In the third quarter ended Sept 30 (3Q25), Genting Plantations’ net profit rose 4.15% to RM86.5mil, or 9.64 sen per share, lifting its nine-month (y-t-d) profit 61.3% higher to RM340.3mil, or 37.93 sen.

Quarterly revenue increased 17.9% to RM846.9mil, bringing nine-month revenue to RM2.33bil, up 12.1%, driven by sustained property sales and firmer selling prices in downstream manufacturing.

The group’s achieved crude palm oil prices averaged RM3,779 per tonne in 3Q25 and RM3,899 per tonne y-t-d, while palm kernel prices averaged RM3,294 per tonne in the quarter and RM3,336 per tonne y-t-d.

Genting Plantations said FFB production in 3Q25 declined year-on-year, mainly due to a low cropping trend at several of the group’s estates.

Y-t-d production was also lower, affected by persistent heavy rainfall and flooding in 1Q25, while ongoing replanting activities at the Malaysian estates further weighed on output.