PETALING JAYA: Sime Darby Plantation Bhd (SD Plantation) reported a net profit of RM190 million for the third quarter ended Sept 30, against a net loss of RM243 million reported in the same quarter of the previous year attributed to a stronger performance from its upstream segment and lower non-recurring losses.
Revenue for the quarter rose 12.8% to RM3.18 billion from RM2.82 billion registered previously.
The group told Bursa, it saw a 26% higher realised crude palm oil (CPO) price of RM2,504 per metric tonne (mt) in the quarter compared to RM1,988 per mt reported previously, while palm kernel (PK) price stood at RM1,370 per mt, 34% higher than RM1,025 per mt recorded previously.
In the first three quarters, the group saw a net profit of RM1.04 billion compared to a net loss of RM142 million reported in the same period of the previous year.
Meanwhile, revenue for the period rose 8.7% to RM9.44 billion from RM8.69 billion registered previously.
The group’s chairman Tan Sri Megat Najmuddin Megat Khas stated that while it continues to monitor and address the Covid-19 impact to its business, it is encouraged by the higher year-on-year performance thus far.
Its group managing director Mohamad Helmy Othman Basha, expects CPO prices continue to be supported in the second half of the year, whilst palm oil demand has improved and is expected to grow further in 202, despite the challenges posed by the pandemic on the global market.
“As a sector that provides essential products to the world, this industry is showing resilience amid global uncertainties,” he said in a press release.
“As a measure to further mitigate the industry’s current labour shortage, we also hope the government will continue with its efforts to alleviate restrictions on foreign labour, whilst the group continues to ramp up mechanisation and digitalisation efforts to increase productivity and reduce reliance on labour in the medium to long term.”
