KUALA LUMPUR: SD Guthrie Bhd
remains positive on its outlook for FY26 as crude palm oil prices remain resilient, with upside potential extending into 2027.
In a statement, the plantations group said near-term market sentiment may be tempered by elevated inventories and softer export demand. However, seasonal production declines are likely to reduce inventories over time, underpinning a more constructive pricing environment.
"Demand continues to be underpinned by Indonesia's B50 biodiesel mandate, while elevated crude oil prices may provide additional support amid geopolitical uncertainties.
"Evolving El Niño conditions remain a key supply-side risk, given their potential lagged impact on plantation yields and palm oil supply," it added.
In the third quarter ended Sept 30, 2026, SD Guthrie posted a net profit of RM773mil, down from RM935mil in the year-ago quarter. Quarterly revenue was slightly lower at RM5.39bil against RM5.41bil in the previous corresponding quarter.
According to the group's results filing with the stock exchange, the midstream and downstream segments delivered lower margins from operations, and a higher share of losses from a joint venture in the latter segment. The industrial development segment, meanwhile, reported a lower profit due to lower contributions from land disposals.
Cumulatively over nine months, the group's net profit was higher at RM2.32bil as compared to RM2.01bil in the same period in 2025, while revenue was lower at RM15.03bil against RM15.4bil previously. This was attributed to higher profits from the overall upstream, midstream and industrial development segments, which compensated for the decline in profits from the downstream segment.
All told, the group said it is on track to register a strong performance for this year with increased profit before interest and tax (PBIT) contributions from its global upstream, midstream and industrial development segments.
"Guthrie has delivered another period of strong earnings growth, driven by higher production, resilient commodity prices and stronger contributions from its Industrial Development segment which has provided catalytic growth for the group," said president and group CEO Mohd Haris Mohd Arshad.
On outlook, he said plantations remain core to the group's overall strategy but it is building complementary growth engines to enhance earnings resilience, create sustainable long-term value and position it for future growth as a global agribusiness company.
