Negri Sembilan Oil Palm’s Q3 op profit up 124.7%

29 November 2006 05:08  [Source: ICIS news]

SINGAPORE (ICIS news)--Negri Sembilan Oil Palms (NSOP) reported a 124.7% rise in its third quarter operating profit due mainly to higher crude palm oil production and prices, the Malaysian company said late on Tuesday. 

For the three months ended 30 September, NSOP’s operating profit rose to ringgit (M$) 7.5m ($2m) from M$3.3m in the same period last year. 

Net profit has also increased 152.6% to M$5.7m from M$2.3m and revenue went up 17.2% to M$14.7m from M$12.5m for the third quarter ended 30 September. 

The main reason for the improved performance was a substantial increase in the production of palm fruit, crude palm oil and palm kernel, the company said.

It noted that the average selling price of crude palm oil was higher, though that of palm kernel was lower as compared to the previous year. The company declined to disclose the average prices of crude palm oil and palm kernel it sold at. 

NSOP’s production of crude palm oil in the third quarter of this year went up by 22.6% to 5,678 tonnes from 4,633 tonnes last year. Its crude palm oil extraction rate however fell slightly from 19.3% to 19.1% in the same period. 

ICIS news recently reported Malaysian crude palm oil prices to have increased by 30% since early this year at ringgit M$1,800/tonne ($496/tonne). Figures by the Malaysian Palm Oil Board state the average price of Malaysian crude palm oil in 2005 as M$1,394/tonne. 

The company said it sells its produce solely to the domestic market and expects Malaysia’s recent biodiesel initiative and the overall decrease in world supply of other plant oils like soy and rapseed will keep palm oil prices buoyant. 

NSOP has a total planted area of 7,161 hectares (71.6m²).

($1 = M$3.63)

By: Keith Tan Liming
+65 6780 4359

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