Ta Ann ops not se­verely im­pacted by Covid-19

The Star Malaysia - StarBiz - - News - By ANDY CHUA andy­chua@thes­tar.com.my

SIBU: Ta Ann Hold­ings Bhd’s busi­ness op­er­a­tions have not been se­verely im­pacted by the Covid-19 pan­demic, says ex­ec­u­tive chair­man Datuk Amar Ab­dul Hamed Sepawi.

He noted that the group’s core tim­ber and oil palm busi­nesses were still op­er­at­ing dur­ing the move­ment re­stric­tion con­trol pe­riod.

Hamed said in a state­ment re­leased af­ter Ta Ann’s AGM yes­ter­day that de­spite the ad­verse eco­nomic con­di­tions, the group de­clared a net profit of Rm70.26mil and an in­terim sin­gle-tier div­i­dend of RM0.05 per share for the fi­nan­cial year 2019 (FY19).

He said “bar­ring un­fore­seen cir­cum­stances, we re­main op­ti­mistic and ex­pect FY20 per­for­mance to be bet­ter than FY19”.

In com­mend­ing the gov­ern­ment’s ef­forts in con­tain­ing the spread of Covid-19, Hamed gave his as­sur­ance that the group would play its part to en­sure that all rel­e­vant stan­dard op­er­at­ing pro­ce­dures (SOPS) are strictly ad­hered to.

On tim­ber di­vi­sion, he said round logs de­mand from In­dia, which is the group’s main ex­port mar­ket will re­main sta­ble as “the im­ported round logs are the raw ma­te­rial to sus­tain their core eco­nomic ac­tiv­i­ties dur­ing the pan­demic, while the ply­wood mar­ket will stay chal­leng­ing, but man­age­able”.

He is also op­ti­mistic that the crude palm oil (CPO) price is ex­pected to “hold steady or pos­si­bly im­prove fur­ther to­wards the end of the year”.

The CPO prices have seen an in­crease from RM2,400 per tonne in June to the cur­rent level of RM2,700 per tonne.

On the oil palm mar­ket, which has seen a sharp drop in the be­gin­ning of the lock­downs, he said it has since re­cov­ered by around 23% in June 2020.

Re­cently, the ad­verse global weather es­pe­cially in China and In­dia has also neg­a­tively im­pacted the pro­duc­tion and sup­ply of veg­etable oils.

Bloomberg re­ported re­cently that palm oil stock­piles in In­done­sia, the world’s top grower, will prob­a­bly slump to their small­est in 16 months by the end of July as pro­duc­tion hits the low­est in more than two years af­ter floods in ma­jor grow­ing re­gions dis­rupted the har­vest and delivery of fruit to mills.

Hamed noted that the lower sup­ply from In­done­sia cou­pled with higher im­port de­mand from In­dia and China will likely fur­ther sup­port CPO prices.

“I’m op­ti­mistic that the crude palm oil price will hold steady or im­prove fur­ther to­wards the end of the year.”

Datuk Amar Ab­dul Hamed Sepawi

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