KUALA LUMPUR: SD Guthrie Bhd
, formerly known as Sime Darby Plantation Bhd, expects crude palm oil (CPO) prices to remain firm until the end of the year, in line with a global economic recovery.
The group said expectations of sustained CPO demand is also anticipated to lend support to prices as it remains competitive compared to other vegetable oils.
"Our plantation operations will continue to register improvements, especially from the Malaysian operations following the success of intensive rehabilitation efforts as well as enhanced agronomic practices.
“This clear focus on the core business segments will be reinforced even as SD Guthrie actively pursues opportunities in new business verticals, embarking into industrial park development in various states and renewable energy, particularly solar farms," the company said in a statement.
In its second quarter ended June 30, the company recorded a 15.3% year-on-year (y-o-y) increase in revenue to RM4.965bil as net profit rose 9.21% to RM415mil.
It declared an interim dividend of 4.65 sen per share for the financial year 2024.
In the notes to its financial statements, the company said its upstream segment did well y-o-y on higher prices, increase in production and lower fertiliser costs despite a slightly lower oil extraction rate.
Its downstream arm SD Guthrie International also reported a stronger financial performance on higher margins achieved in all regions, primarily due to better prices, higher sustainability premiums and improved product mix.
“I am pleased that SD Guthrie continued on its positive trajectory this year. Our strong financial performance to date adds to the excitement of our new brand identity as well as many other exciting developments in the company,” said its chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani.
Its group managing director Datuk Mohamad Helmy Othman Basha said its involvement in the development of the Kerian Integrated Green Industrial Park in Perak and the next phase of Enstek Industrial Park in Negeri Sembilan reflected the huge opportunities that lie ahead for itself.
"Also, our commitment to strengthening our core business segments is evident in the success of Upstream Malaysia’s rehabilitation efforts and remarkable turnaround.
“With this critical foundation in place, we will be well-positioned to shift focus towards our growth strategies and explore the further diversification of our current business to deliver a stronger performance in the future,” Mohamad Helmy added.
