KUALA LUMPUR: United Plantations Bhd’s net profit for the first quarter (1Q) ended March 31, 2026 (FY2026) fell to RM160.65 million from RM163.26 million in the same quarter last year.
In a Bursa Malaysia filing on Wednesday, the oil palm plantation company said revenue improved by 23.8 per cent to RM640.58 million from RM517.63 million in 1Q FY2025.
“This revenue growth was driven by both the plantation and refinery segments, mainly due to increased crude palm oil (CPO) and palm kernel (PK) production, as well as higher sales volume at the refinery,” it said.
Key factors to monitor in the coming months would be developments in global energy markets and the actual implementation and impact of higher biodiesel mandates, particularly in Indonesia and the United States, as well as weather patterns across palm oil-growing regions.
Indonesia’s continued push towards higher biodiesel blending, including the prospect of B50, together with record biofuel mandates in the US, are supportive of vegetable oil demand and may continue to underpin palm oil prices.
“Demand from key consuming countries such as India and China appears to have been brought forward into the early part of the year and may reduce incremental buying interest in the near term.
“In addition, palm oil production in both Malaysia and Indonesia is seasonally expected to recover during the 2Q, which could contribute to some rebuilding in supply and thereby limit further sharp upside in prices,” said the company.
It added that elevated prices, combined with uncertain global economic growth, may also lead to some degree of demand rationing, particularly in food consumption.
Based on the current palm oil price levels, supportive biodiesel demand outlook and operational discipline, the company is expected to perform satisfactorily in 2026. – BERNAMA
