Glenealy Plantations (Malaya) Berhad (Malaysia)

GNEALY is principally engaged in investment holding and provision of management services to its subsidiaries. The principal activities of the subsidiaries are the operations of oil palm plantations, palm oil mills, forest plantations, quarry operations and road construction. Glenealy Plantations (Malaya) Berhad was incorporated in 1958 and was listed on the Main Board of Bursa Malaysia since 1973. In 1994, Glenealy became an associate company of Lingui Developments Berhad, an integrated forest resource and wood products company also listed on the Main Board of Bursa Malaysia. Glenealy is principally involved in the operation of oil palm plantations in Sabah and Sarawak. Glenealy has 21,123 ha of land bank for development of oil palm plantations in Jelalong, Sarawak and 34,600 ha in Kalimantan Timur, Indonesia. Currently, the Group has three palm oil mills, located at Belaga and Lana in Sarawak, and at Lahad Datuin Sabah. There are two main subsidiaries under the wings of Glenealy Plantations: Amalania Koko Bhd and Timor Enterprises Sdn Bhd. The subsidiaries deal with the processing of crude palm oil and palm kernel as well as exporting overseas. Plantation operations are mainly located in Sabah (Lahad Datu) and Sarawak (Bintulu). Each of these subsidiaries is well equipped with enhanced milling technology and is efficiently managed by a pool of expertise within the company. Timor Enterprises is a testament to this efficiency as it received recognition Malaysian Palm Oil Board (MPOB) for achieving the highest oil extraction rate (OER) in Sarawak under the Own Fruit Supply Category in 2002 & 2007. MG BioGreen, an associate company of Glenealy, manages a bio-organic fertiliser ('BOF') plant in Lahad Datu, Sabah. The plant uses the waste generated from the Group's palm oil mill to breakdown the mixture into BOF. The plant has an initial capacity of producing approximately 9,000 MT of BOF per year with the potential to produce up to 14,400 MT per year. The fertilisers produced will be applied to the Group's plantations. Glenealy has a high level of oil palm business know-how that not only encourage high output of improved products but also to be recognised as a plantation company that practices sustainable yielding yet competitive and innovative. During the second half of the financial year under review, the Group’s plantations located in Lana, Sarawak, commenced commercial harvesting, producing 8,904 MT of the fresh fruit bunches (FFB). However, in spite of the contribution from this new area, the Group’s FFB production fell by 6% to 285,018 MT compared to the preceding financial year. The Group’s overall production was affected
¶by the cyclical effects of the palm’s production cycle, lower yields from ageing tall palm areas earmarked for replanting in Sabah and the increasing hectarage of young maturing palms.Group revenue correspondingly declined by 29% to RM175.8 million from the RM247.5 million achieved in the preceding financial year. Profit before tax was RM47.1 million, which was 67% lower than the preceding financial year of RM144.7 million. After incurring RM86.5 million on capital expenditure, principally for new planting in Sarawak and the construction of a new palm oil mill in Lana plantations, Sarawak, the Group’s cash position as at the end of the financial year under review was RM158.8 million.