KUALA LUMPUR, Feb 28 — Sime Darby Plantation Bhd saw a lower net profit for the six months ended December 31, 2018, down 83 per cent compared with RM1.44 billion for the corresponding period of the previous year.

However, the decline was largely due to the non-recurring net profit of RM749 million in the previous year relating to the gain on sale of land to a related party and a one-off writeback of donation to Yayasan Sime Darby, as well as lower recurring profit before interest and tax (PBIT).

"The group registered recurring PBIT of RM545 million, which was 54 per cent lower than RM1.18 billion recorded in the corresponding period of the previous year, on the back of weaker average crude palm oil (CPO) and palm kernel (PK) price realised,” it said in a filing with Bursa Malaysia here today.

However, it said improved operational statistics of the upstream segments and continued earnings improvement from its downstream operations partially mitigated the impact of lower CPO and PK prices.

Revenue was down 14 per cent to RM6.54 billion versus RM7.62 billion previously.

For the second quarter ended Dec 31, 2018, net profit was also lower at RM129 million compared with RM429 million before, while revenue stood at RM3.5 billion versus RM4.08 billion previously.

As for prospects, it said save for any extreme weather abnormalities, the group expects fresh fruit bunches production to improve in the financial year ending December 31, 2019.

CPO prices will likely remain flat in the near term. However, slower production growth and higher demand from China and India, could lend support to CPO prices.

"Other factors such as the movement of crude oil prices and the ringgit, the revision of biodiesel rules in Malaysia and Indonesia, tax regulations in major consuming countries and competition from other edible oils may influence the market prices of CPO and other palm products,” said Sime Darby.

Barring any unforeseen circumstances, the group expects its recurring operating performance for the financial year ending December 2019 to be satisfactory, it said.

A final single tier dividend of 1.7 sen per share in respect of the financial period ended December 31, 2018 has been approved by the board and will be paid on May 21, 2019. — Bernama