MKH Annual Report 2020

CORPORATE INFORMATION 26 ANNUAL REPORT 2020 Management Discussion and Analysis Report Plantation The following table summarises the performance of the division for the past three (3) years: Production for Estate (MT) FY2020 FY2019 FY2018 Fresh Fruit Bunches (“FFB”) 477,000* 459,000* 465,000* Crude Palm Oil (“CPO”) 100,000* 100,000* 101,000* Average CPO Price RM2,227 RM1,856 RM2,163 Oil Extraction Rate (“OER”) 21% 21% 21% PT MKH – FFB Yield/hectare 30 MT 29 MT 30 MT Note: Figures exclude CPO purchased from outside parties for resale. *rounded up to nearest thousand For FY2020, the Plantation Division recorded a higher revenue by 9% to RM250.5 million (FY2019: RM229.8 million) mainly attributable to higher average CPO price of RM2,227 per metric ton (MT) in FY2020 as compared to RM1,856 per MT in FY2019. This division’s PBT was higher by 344% to RM26.2 million (FY2019: RM5.9 million) mainly due to higher average CPO price and couple with lower average production cost incurred as a result of higher production of FFB of 477,000 MT in FY2020 (FY2019: 459,000 MT). This division recorded unrealised foreign exchange losses of RM14.1 million in FY2020 (FY2019: unrealised foreign exchange gains of RM14.0 million) following the weakening of Indonesian Rupiah against its borrowings in US Dollar. Excluding the unrealised foreign exchange losses or gains, this division recorded PBT of RM40.3 million for FY2020 as compared to loss before tax of RM8.1 million in FY2019 due to the above mentioned factors. As at 30 September 2020, the total area planted for this division was about 16,408 hectares (FY2019: 16,408 hectares) with 16,081 hectares (FY2019: 15,623 hectares) have reached the mature age for harvest. Presently, PT Maju Kalimantan Hadapan is planted with 14,877 hectares of oil palm trees aged between 9 and 12 years old, while PT Sawit Prima Sakti is planted with 1,531 hectares of trees aged between 3 and 9 years old. 9% RM250.5 million PBT was higher by 344% to RM26.2 million Higher revenue by Plantation Division Bountiful harvested FFB being transported by lorry to our CPO mill