Sime Darby Plantation considers new company

Kuala Lumpur: Sime Darby Plantation Bhd, which is en route for listing this month, is considering the acquisition of a new company moving forward if the opportunity arises, said Chief Executive Officer Datuk Franki Anthony Dass."If there is potential, we would be opened for it, but at this point, we would like to focus on the business first.

"If there are good opportunities, we will go to the board with the acquisition proposal," he told reporters after the group's FY2017/2018 results announcement here Thursday.

With its plantation land bank stands at one million hectares currently, he said Sime Darby Plantation is the world's largest plantation group but could still manage a new acquisition.

In a filing to Bursa Malaysia, the company said its net profit surged to RM1.02 billion for the first quarter ended Sept 30, 2017 from RM151 million in the previous corresponding period due to the disposal gain of RM676 million and higher crude palm oil (CPO) prices.

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Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

Revenue rose 25.6 per cent from RM2.82 billion to RM3.54 billion due to the sale of its land to Sime Darby Property Bhd.

The jump in earnings was also supported by the recovery of fresh fruit bunches (FFB) production from the effects of El Nino and higher average CPO price realised.

For the quarter under review, its FFB production increased 25 per cent to 2.696 million metric tonnes and the average CPO price realised was four per cent higher at RM2,693 per metric tonne compared to the previous corresponding quarter.

Barring any extreme weather abnormalities, it expects FFB production in the financial year ending June 30, 2018 to continue to recover from the lingering effects of the El Nino in 2015.

"The group will continue to focus its efforts on accelerating the replanting exercise to improve yields and reduce costs for a long-term sustainable performance," it said.

It also expects a continued year-on-year recovery due to the coming of maturity of additional planted areas and the progression of existing mature areas into higher yielding age brackets.

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Meanwhile, the company noted that CPO prices would continue to be dependent on economic and market volatility, influenced by overall supply and demand balance of the global edible oil markets, weather conditions, foreign currency rates, and the development in the implementation of biodiesel mandates and EU resolutions.

Sime Darby Plantation expects CPO prices to be sustained at above RM2,500 per metric tonne until March 2018. – Bernama

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