United Plantations' 2Q Net Profit Falls To RM194 Mln, Revenue Rises To RM641.84 Mln
KUALA LUMPUR, July 22 (Bernama) -- United Plantations Bhd's net profit for the second quarter ended June 30, 2026 (2Q FY2026) declined to RM194.00 million, compared with RM249.38 million recorded in the same quarter last year.
Revenue rose to RM641.84 million in 2Q FY2026 from RM638.42 million in the corresponding quarter a year ago, stated United Plantations in a Bursa Malaysia filing today.
Its net profit for the first half ended June 30, 2026 (1H FY2026) decreased to RM354.66 million, from RM412.64 million previously; however, revenue increased to RM1.28 billion from RM1.16 billion in the same period last year.
The palm oil plantation company said the lower net profit was mainly attributable to weaker performances in both its plantation and refinery segments.
The plantation segment was affected by lower Malaysian Palm Oil Board (MPOB) prices during the period, while the refinery segment recorded weaker performance due to lower refining margins and foreign exchange hedging losses incurred during the quarter.
Meanwhile, it said that the revenue growth was primarily driven by the refinery segment, supported by higher refinery sales volumes.
"Revenue from the refinery segment increased by 15.7 per cent to RM864.20 million in the current period, compared to RM746.90 million in the corresponding period, primarily driven by higher sales volume," it said.
The company said it will continue to monitor developments in global energy markets, the implementation of Indonesia's biodiesel programme, weather conditions across major vegetable oil-producing regions, and the potential emergence of a strong El Nino event later this year in Indonesia, Malaysia and Thailand.
"Crude palm oil production in Malaysia increased only marginally during the first six months of 2026 compared with the corresponding period last year, supported by a stable labour situation and generally favourable weather conditions, with no significant El Nino impact experienced thus far," it said.
United Plantations said its management remains focused on operational excellence through disciplined agronomic practices, ongoing mechanisation initiatives, and the replanting of older and less productive oil palm stands with its latest in-house superior planting materials.
It added that maintaining high yields, enhancing productivity and containing costs remain key priorities in safeguarding the group's competitiveness amid continued pressure from rising labour, energy and other input costs.
-- BERNAMA