26 Annual Report 2021 Production for Estate (MT) FY2021 FY2020 FY2019 Fresh Fruit Bunches (“FFB”) 441,000* 477,000* 459,000* Crude Palm Oil (“CPO”) 89,000* 100,000* 100,000* Average CPO Price RM2,945 RM2,227 RM1,856 Oil Extraction Rate (“OER”) 19.45% 21% 21% PT MKH – FFB Yield/hectare 28 MT 30 MT 29 MT Management Discussion and Analysis Report Note: Figures exclude CPO purchased from outside parties for resale. *rounded up to nearest thousand Plantation The following table summarises the performance of the division for the past three (3) years: For FY2021, the Plantation Division recorded a higher revenue by 17.6% to RM294.5 million (FY2020: RM250.5million) mainly attributable to higher average CPO price of RM2,945 per metric ton (MT) in FY2021 as compared to RM2,227 per MT in FY2020. This division’s PBT was signifcantly higher by 288.9% to RM101.9 million (FY2020: RM26.2 million) mainly due to higher average CPO selling price. This division recorded unrealised foreign exchange gains of RM8.0 million in FY2021 (FY2020: unrealised foreign exchange losses of RM14.1 million) following the strengthening of Indonesian Rupiah against its borrowings in US Dollar. Excluding the unrealised foreign exchangegains or losses, this division recorded signifcant increase in PBT by 133.0% to RM93.9million as compared to RM40.3 million in FY2020 due to the above mentioned factors. As with other commercial crops, prolong drier or wetter weather will result in lower crop production. The Kalimantan region in Indonesia including at our oil palm plantation in East Kalimantan has generally been experiencing above average rain fall resulting in lower FFB production and higher fruit moisture content leading to lower oil extraction rate (“OER”). Our plantation division continuously take proactive steps such as enhancing our water management system and also fne tuning the harvesting Standard Fresh Fruit Bunches (“FFB”) Harvester loading ripe fresh fruit bunches (“FFB”) Operating Procedures (“SOP’s”) to mitigate the effect of higher average rain fall. Thanks to our mitigating efforts, the reduction in our FFB and CPO production for FY2021 was relatively small and this has enabled our Plantation Division to capitalise on the higher CPO price resulting in a commendable 288.9% increase in proft before tax to RM101.9 million for FY2021 for the Plantation Division. We expect the weather to improve in the coming months and as the weather normalise, the production of FFB and OER will increase. As at 30 September 2021, the total area planted for this division was about 16,408 hectares (FY2020: 16,408 hectares) with 16,081 hectares (FY2020: 16,081 hectares) have reached the mature age for harvest. PT Maju Kalimantan Hadapan is planted with 14,877 hectares of oil palm trees aged between 10 and 13 years old, while PT Sawit Prima Sakti is planted with 1,531 hectares of trees aged between 4 and 10 years old.
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