27 The following table summarises the performance of the division for the past three (3) years: Note: Figures exclude CPO purchased from outside parties for resale. *rounded up to nearest thousand. MKH Berhad Plantation FY2020 FY2022 Production for Estate (MT) FY2021 Fresh Fruit Bunches (“FFB”) 383,000* 477,000* 441,000* Crude Palm Oil (“CPO”) 75,000* 100,000* 89,000* Average CPO Price / MT RM3,847 RM2,227 RM2,945 18.51% Oil Extraction Rate (“OER”) 21% 19.45% PT MKH – FFB Yield/hectare 24 MT 30 MT 28 MT For FY2022, the Plantation Division recorded a higher revenue by 7.3% to RM315.8 million (FY2021: RM294.5 million) mainly attributable to higher average CPO price of RM3,847 per metric ton (MT) in FY2022 as compared to RM2,945 per MT in FY2021. This division’s PBT decreased by 24.8% to RM76.6 million (FY2021: RM101.9 million). The lower PBT was mainly due to higher average production cost incurred as a result of lower production of FFB arising from the La-Nina wet weather effect and higher fertiliser cost. This division recorded unrealised foreign exchange gains of RM4.7 million in FY2022 (FY2021: RM8.0 million). The unrealised foreign exchange gains were mainly due to strengthening of IDR against the RM. Excluding unrealised foreign exchange gains, this division recorded PBT of RM71.9 million in the current year as compared to the preceding year of RM93.9 million. The prolonged wet weather had resulted lower crop production throughout the financial year. Our oil palm plantation in East Kalimantan region has generally been experiencing above average rain fall resulting in lower FFB production and higher fruit moisture content leading to lower OER. Our plantation division continuously take proactive steps such as enhancing water management system and also fine tuning the harvesting Standard Operating Procedures (“SOP’s”) to mitigate the effect of higher average rain fall. 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 2022, the total area planted for this division was about 16,408 hectares (FY2021: 16,408 hectares) with 16,408 hectares (FY2021: 16,081 hectares) have reached the mature age for harvesting. PT Maju Kalimantan Hadapan is planted with 14,877 hectares of oil palm trees aged between 11 and 14 years old, while PT Sawit Prima Sakti is planted with 1,531 hectares of trees aged between 5 and 11 years old. Management Discussion & Analysis Report Ripe fresh fruit bunches ready for harvesting
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