KUALA LUMPUR: Sime Darby Plantation Bhd’s (SD Plantation) net profit more than doubled to RM617 million in the second quarter (Q2) ended June 30, 2021 from the RM378 million recorded in the same period a year ago.
In a statement today, SD Plantation said this was attributable to higher realised crude palm oil (CPO) and palm kernel (PK) prices, as well as an increase in fresh fruit bunch (FFB) production.
Its revenue soared 37.2 per cent to RM4.41 billion from RM3.22 billion previously.
SD Plantation group managing director Mohamad Helmy Othman Basha said it had performed well, despite the numerous challenges of the current environment.
He said these ranged from labour shortages to the Withhold Release Order imposed by the US Customs and Border Protection on its Malaysian products.
“The board and management are focused on protecting shareholder value and building on our strong foundation, while finding new solutions, to effect and implement the necessary improvements.
“We are also conscious of the fact that the pandemic has resulted in rising unemployment in Malaysia.
“We are fortunate to be in a position to help, and have launched campaigns to reach out to Malaysians who are seeking stable employment which comes with housing benefits among estate families and communities,” he said.
SD Plantation chairman Tan Sri Megat Najmuddin Megat Khas said it was on track to achieve its targets for the financial year 2021, despite the challenges posed by the pandemic and the national level lockdown.
“In view of the persistently high Covid-19 cases in the country, it is vital that we continue to remain vigilant and safeguard our employees,” he said.
Megat Najmuddin said to date, the company had set up three industrial vaccination centres (PPVIN) for the plantation industry in Sarawak and Selangor.
“More than 10,500 workers will be inoculated in these centres. We are also looking at setting up more centres in our operations across the country,” he added.
For the first half of the year, SD Plantation’s net profit increased 39.4 per cent to RM1.18 billion from RM846 million, while rose 29.1 per cent to RM8.08 billion from RM6.26 billion.
SD Plantation declared an interim dividend of 7.9 sen per share for the year ending December 31 2021 (FY21).
The dividend will be paid on November 12.
SD Plantation expects its Indonesia and Papua New Guinea operations to register higher FFB production this year supported by better weather conditions.
“This is expected to mitigate the impact of the prolonged labour shortages at its Malaysia plantations.
“Thus, FFB production for the FY21 is expected to remain comparable to FY20.
“With the continued impact of labour shortages on Malaysia’s CPO production as well as tight global vegetable oil inventory levels, the group expects prices to remain firm,” it said.
Source: New Straits Times
