Kamaruzzaman: ‘We are continoulsy exploring new land opportunities.’

21/06/2013 (The Star) -  Kulim (M) Bhd expects its proposal to raise its stake in associate New Britain Palm Oil Ltd (NBPOL) to a controlling level to be concluded in September or October.

Chairman Datuk Kamaruzzaman Abu Kassim said the decision to buy back NBPOL shares after diluting them in 2012 was purely a business decision, as it augured well for Kulim's long-term growth.

“When there are good business opportunities and the timing is right, you should not miss them or let them go,” he told StarBiz after the company's AGM.

Kamaruzzaman said the oil palm business would continue to be Kulim's core activity and that the company would look at ways to further develop and strengthen the division.

NBPOL is an integrated industrial producer of sustainable palm oil in Australasia.

According to its website, it has over 78,000ha of oil palm plantations, a further 10,000ha under preparation for oil palm, over 7,700ha of sugar cane and a further 9,200ha of grazing pastures.

It has 12 oil mills, two refineries one in Papua New Guinea and one in Liverpool, the United Kingdom as well as a seed production and palm breeding facility.

“We are continoulsy exploring new land opportunities from time to time for our oil palm business both locally and abroad,” said Kamaruzzaman.

He said getting suitable land for oil palm cultivation in Malaysia was not that easy anymore, as land owners were becoming more demanding and the asking prices were “too exorbitant”.

Kamaruzzaman did not dismiss the possibility of Kulim going to Indonesia again for oil palm cultivation, although the company had divested its investment there in 2007.

He said the company would capitalise on new areas of opportunities, especially in servicing the oil and gas sector and undertaking selective property development.

“We see Petroliam Nasional Bhd's Refinery and Petrochemical Integrated Development or Rapid project in Pengerang, Johor, as a good platform to offer support services to the oil and gas players there,” he added.

For the financial year ended Dec 31, 2012 (FY12), Kulim recorded a net profit of RM1.01bil on RM906.81mil in revenue against RM1bil and RM1.94bil respectively for FY11.