Sime Darby Plantation posts net profit of RM115 mln for July-Sept

KUALA LUMPUR: Sime Darby Plantation Bhd posted a net profit of RM115 million for the threemonth period from July 1 to Sept 30, 2018 against RM30 million in the preceding quarter.

Revenue amounted to RM3.04 billion, down one per cent from the preceding quarter, due to lower contribution from the upstream and downstream segments attributable to weaker average crude palm oil (CPO) and palm kernel (PK) prices.

In a filing to Bursa Malaysia yesterday, the group said the average CPO price realised declined by 21 per cent yearon-year (y-o-y) from RM2,693 per tonne to RM2,117 per tonne, whereas the average PK price realised declined by 22 per cent y-o-y from RM2,109 per tonne to RM1,649 per tonne.

It said, however, the decline in earnings was partially mitigated by higher fresh fruit bunches production, which increased by two per cent to 2.75 million tonnes in the three-month period ended Sept 30, 2018, from 2.70 million tonnes in the previous corresponding period.

Executive deputy chairman and managing director, Tan Sri Mohd Bakke Salleh, said the group is well into the half-way mark of its six-month financial period as Sime Darby Plantation moves towards Dec 31, 2018.

“The business environment remains challenging as the CPO price traded at a low of RM2,065 per tonne on Sept 28, 2018. Nevertheless, we remain steadfast in our drive to improve operational efficiency,” he said.

He noted that the group had incorporated new breakthrough technologies and innovations into its operations in line with the aspirations of Industry 4.0.

“With higher levels of mechanisation and automation, the group endeavours to increase productivity and contribute to the upskilling of our workforce. This will mitigate the impact of the upcoming new rate of minimum wage as we maintain prudent cost management,” he said.

Fundamentally, the group operations and finances remained strong, Mohd Bakke said.

The affirmation by various rating agencies over the course of the past few months augured well for the group’s business as it moves forward into the new financial year in January 2019,” he added. — Bernama