In its filing with the bourse, Genting Plantations attributed the growth for the quarter to the stronger performance of its plantation segment, underpinned by the increases in prices of palm products. It said the downstream manufacturing segment posted marginally lower year-on-year revenue amid lower sales volume, although this was mitigated by the higher selling prices. Looking ahead, it expects palm oil prices to remain resilient in the remaining part of the year, supported by sustained demand amid global economic recovery, tightness in supply ahead of the upcoming monsoon season, as well as the historically high prices of other substitute oils and fats. The biotechnology segment will continue to develop commercial solutions and applications to enhance the yield and productivity of oil palm, the company noted. It said the outlook for biodiesel, on the other hand, will remain challenging due to the unfavourable palm oil-gas oil spread.

Source: The Edge Markets November 24, 2021 16:35 UTC