KUALA LUMPUR, Aug 23 — Sime Darby Plantation Bhd (SDP) expects to see improved financial performance in the second half of 2023 (2H 2023) compared with the first half, in view of better income and profit on the back of higher production and the steady crude pam oil (CPO) price.
Group managing director Datuk Mohamad Helmy Othman Basha said crop activities usually peak during the second half of the year, and in fact, the group has already seen an uptick in production this month.
“We will probably be seeing more (production) in September, October and November, meaning there will be better income and profit for us in 2H 2023, obviously subject to the CPO price,” he told a virtual press conference on SDP’s results for the first half year ended June 30, 2023 today.
Addressing concerns over El Nino, Mohamad Helmy said the group has yet to experience any impact from the weather phenomenon although some locations in the country have already entered the dry period.
He noted that the plantation areas in Indonesia, especially Kalimantan, would be hit by El Nino in the mid-term (of 2H 2023), which could affect the growth of the fruits and formation of branches.
“For us at SDP, the impact of El Nino will be quite limited. As for the industry at large, El Nino will have some impact as Indonesia is a big producer,” he explained.
Mohamad Helmy expects the overall fresh fruit bunches (FFB) production within the group to increase by between five and eight per cent in 2H 2023.
On CPO price, Sime Darby Oils Sdn Bhd managing director Haris Arshad said it is expected to trade within the current range of between RM3,800 and RM3,900 per tonne.
Nevertheless, he expects the price could possibly touch RM4,000 per tonne in the late third quarter of this year.
Sime Darby Oils is the downstream unit of SDP. — Bernama
