TSH Resources Q3 profit rises 12% to RM33.1 million

PLANTATION company TSH Resources reported on Thursday (Nov 21) a 12 per cent increase in net profit for the third quarter, despite a rise in crude oil prices.

Net profit for the three months ended Sep 30 rose to RM33.1 million from RM29.5 million in the year-ago period, the company said in a bourse filing. The company has a primary listing on Bursa Malaysia and a secondary listing on the Singapore Exchange.

TSH’s core profit before tax, which excludes disposal gains and foreign-exchange effects, was 18 per cent lower in Q3 2024, at RM49.4 million.

Revenue for the quarter was down 22 per cent on year to RM231.9 million, mainly due to lower revenue from its palm products segment.

Revenue from that segment stood at RM218.9 million, down 22 per cent from the year before. Its “others” segment posted a loss of 33 per cent, falling to RM13.1 million in Q3 from RM19.5 million in the year-ago quarter. The company attributed the loss to the cessation of its cacao division in Q4 of 2023, as well as lower demand for wood product exports.

In terms of geographical segments, the company pulled in the highest revenue in Indonesia, which contributed RM144.9 million for Q3. Quarter on quarter, however, this segment was down by a third (32 per cent).

Earnings per share rose to 2.40 sen in Q3, up from 2.14 sen a year ago.

Its losses due to foreign-currency translation difference rose 132 per cent from RM39.9 million the year before to RM92.7 million in Q3.

The company said that festive demand in the run-up to the Chinese New Year in January, and Ramadan the following month would support its crude palm oil prices until Q1 of 2025.

“However, future crude palm oil prices will continue to be influenced by factors, including supply and demand shifts and currency and financial market uncertainty,” said the company.

Shares of TSH in Singapore rose 2.9 per cent to close at S$0.355 on Thursday before the announcement.