KUALA LUMPUR, Aug 27 — Sime Darby Plantation Bhd (SDP) recorded a jump in net profit for the second quarter ended June 30, 2020, to RM378.00 million from RM27 million in the same period a year ago.
Revenue increased to RM3.21 billion versus RM2.86 billion while its basic earnings per share was at 5.50 sen from 0.40 sen, the plantation company said in a Bursa Malaysia filling today.
As for the first half of 2020, SDP reported significantly improved year-on-year results on the back of stronger crude palm oil and palm kernel prices realised.
Its net profit for the first six month this year was RM846.00 million from RM101.00 million while revenue was RM6.26 billion compared with RM5.86 billion.
“This helped mitigate the impact of the Covid-19 pandemic on the results of its downstream subsidiary, Sime Darby Oil (SDO).
“SDO’s bulk operations margins and demand for its packed products from the food and beverage sector, particularly in Europe were adversely affected by the lockdown measures enforced by countries worldwide,” group managing director Mohamad Helmy Othman Basha said in a separate statement.
He said SDP expects demand to improve in the second half of 2020 as countries ease lockdown restrictions allowing businesses to replenish stocks.
“We anticipate prices to remain stable in the second half of the year given concerns about edible oil supplies due to a potential La Nina,” he added.
The group declared an interim dividend of 2.57 sen per share and a special interim dividend of 1.45 sen per share, which will be paid to shareholders on November 26, 2020.
On the downside risk, SDP said the worsening foreign labour shortage in Malaysia subsequent to travel restrictions imposed to prevent the spread of Covid-19, is expected to impact crop production.
Hence, to mitigate the labour shortage, it is actively exploring all avenues available, including recruiting local employees as well as enhancing mechanisation and digitalisation efforts.
Barring any extreme weather abnormalities, the group expects production of its fresh fruit bunches for the full financial year 2020 to remain relatively unchanged. — Bernama
