Sime Darby’s Q2 profit more than double to RM644 million

PETALING JAYA: Sime Darby Bhd's net profit more than doubled to RM644 million for the second quarter (Q2) ended December 31, 2016 against RM285,000 in the previous corresponding period, driven by the increase in crude palm oil (CPO) prices and better fresh fruit bunches (FFB) production.
Revenue expanded 4.3% from RM11.83 billion to RM12.34 billion.
It has proposed to declare an interim dividend of 6 sen per share for the quarter under review.
In a filing with the stock exchange, the conglomerate said its plantation division's profit before interest and tax (PBIT) increased almost four-fold to RM568 million in Q2 FY17 from RM159 million in Q2 FY16, with average CPO price realised of RM2,835 for tonne against RM2,066 in the same period a year ago.
For the first half of the year, Sime Darby's net profit jumped 78.5% from RM609 million to RM1.09 billion on the back of a 2% rise in revenue from RM22 billion to RM22.44 billion.
Against the challenging operating environment, the group expects its performance for the financial year ending June 30, 2017 to be satisfactory.