money

GENTING Plantations Bhd has reported a pre-tax profit of RM301.9 million for its financial year ended Dec 31, 2009, down 37 per cent from the previous year's record level of RM482.88 million.

Revenue declined 27 per cent to RM755.6 million while earnings per share was 37 per cent lower at 31.1 sen, the company said in a statement Wednesday.

The weaker results in 2009 were mainly due to a six per cent year-on-year decline in the production of fresh fruit bunches (FFB) and softer prices of palm products amid a downturn in the global economy, it said.

The average crude palm oil (CPO) and palm kernel prices achieved in 2009 were RM2,236/mt and RM1,063/mt respectively compared with RM2,822/mt and RM1,595/mt in 2008, said Genting Plantations.

Contribution from the Property Division was also lower in 2009, down 45 per cent from the previous year to RM6.8 million due to the unfavourable economic conditions, the company said.

Expenditure incurred for the Biotechnology Division increased slightly in 2009 compared to 2008, but this was mitigated by the lower deficit recorded for the Plantation-Indonesia Division.

"Barring any unforeseen circumstances, the performance of the group for the coming financial year is expected to be satisfactory," Genting Plantations said.

The board of directors recommended a final dividend of 5.25 sen per ordinary share of 50 sen each, less 25 per cent tax, for the 2009 financial year.

This is higher than the final dividend of 5.0 sen per ordinary share, less 25 per cent tax, recommended for the previous year. - BERNAMA