Sime Darby Plantation sees 6-7% growth in FFB output

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange was 0.2 percent lower at 2,713 ringgit ($650.13) a tonne at the close of trade, down for a fifth straight session. It had earlier touched its lowest since Oct. 19 at 2,709 ringgit.

KUALA LUMPUR: Sime Darby Plantation Bhd is targeting to increase its fresh fruit bunch (FFB) by 6-7% in the current financial year ending June 30, 2018 (FY18), according to chief executive officer Datuk Franki Anthony Dass.

In the first quarter ended Sept 30, 2017, Sime Darby Plantations’ FFB production increased 25% to 2.696 million metric tonnes and the average crude palm oil (CPO) price realised was 4% higher at RM2,693 per metric tonne as compared with the previous corresponding quarter.

Franki expects the CPO price to be sustained at about RM2,600 to RM2,700 per tonne for the rest of the year. 

“Anything beyond December is anybody’s guess,” he said at the group’s financial results briefing.

In the first quarter to Sept 30, Sime Darby Plantation’s net profit jumped over six times to RM1.02bil against RM151mil in the previous corresponding period, mainly driven by a disposal gain of RM676mil and higher crude palm oil (CPO) prices.

Its revenue rose 25.6% from RM2.82bil to RM3.54bil. Earnings per share were 169.8 sen compared with 25.2 sen.