Sime Darby Plantation rides on high CPO prices


Group managing director Mohamad Helmy Othman Basha (pic) said despite the challenges posed by the pandemic on global markets, CPO prices continued to be supported in the second half of the year while palm oil demand has improved and is expected to grow further in 2021.

KUALA LUMPUR: Sime Darby Plantation Bhd posted a net profit of RM190mil in the third quarter ended Sept 30, against a net loss of RM243mil in the same period last year.

The planter saw its revenue rose to RM3.18bil from RM2.82bil a year ago. Its earnings per share (EPS) in the third quarter stood at 1.54 sen versus 1.07 sen in the same quarter last year.

In a statement, Sime Darby Plantation said it recorded improved year-on-year results bolstered by higher crude palm oil (CPO) and palm kernel (PK) prices realised.

The group’s downstream segment, Sime Darby Oils, tripled its profit before interest and tax to RM71mil in the third quarter versus RM24mil in the immediate preceding quarter, from improved performance particularly in the Asia-Pacific.

In the first nine months, Sime Darby Plantation posted a net profit of RM1.03bil, or 15 sen EPS, on revenue of RM9.44bil.

Chairman Tan Sri Megat Najmuddin Megat Khas said that for the rest of the financial year, the group would remain focused on delivering value to stakeholders as it navigated through the current challenging environment.

“We will continue to prioritise the health and safety of our stakeholders, the job security of our employees, our commitment to sustainable practices, protection of human rights as well as our research and development and innovation initiatives, ” he said.

Group managing director Mohamad Helmy Othman Basha (pic) said despite the challenges posed by the pandemic on global markets, CPO prices continued to be supported in the second half of the year while palm oil demand has improved and is expected to grow further in 2021.

He added that as a sector that provided essential products to the world, the industry is showing resilience amid global uncertainties.

“Given these challenging times, we urge more unemployed Malaysians to seize job opportunities available in the palm oil industry.”

The group expects its financial performance for the financial year ending Dec 31,2020 to be better than last year.

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