MARKET DEVELOPMENT
Sime Expects CPO Prices To Average RM1,900-RM2,000 A Tonne Until End-September
Sime Expects CPO Prices To Average RM1,900-RM2,000 A Tonne Until End-September
27/08/2015 (Bernama) - Sime Darby Bhd expects crude palm oil (CPO) prices to average between RM1,900 and RM2,000 per tonne until the end of September.
President/Group Chief Executive, Tan Sri Mohd Bakke Salleh, said the bleak CPO price outlook was in line with the current bearish market sentiment.
"There are many factors (in the market), made worse by what is happening in the equity and currency markets," he told reporters after announcing the group's full-year financial performance here Wednesday.
Sime Darby Bhd's pre-tax profit for the financial year ended June 30, 2015 (FY15) fell to RM3 billion from RM3.96 billion a year ago.
Revenue declined to RM43.73 billion from RM43.91 billion previously,
The plantation division's earnings dropped by 39 per cent to RM1.15 million compared with a year before, largely due to lower average CPO price of RM2,193 per tonne
Mohd Bakke said the group was weighting options to strengthen its balance sheet to reduce its RM18 billion debts as well as gearing level.
He said the group's gearing ratio stood at 58 per cent as of June 30, 2015 after the acquisition of NBPOL and the company planned to reduce it to between 30 and 35 per cent.
However, the group has yet to come to a decision on financing option, he said.
"It is work in progress. We are definitely working on the exercise of strengthening our balance sheet. The intention is to come up with a gearing ratio that is more palatable to ourselves and our stakeholders," he said.
Mohd Bakke said Sime Darby was considering mergers and acquisitions within its core businesses as new growth opportunities.
"We have been receiving many offers from some of these players which consider partnering us, or buying over our assets," he said.
President/Group Chief Executive, Tan Sri Mohd Bakke Salleh, said the bleak CPO price outlook was in line with the current bearish market sentiment.
"There are many factors (in the market), made worse by what is happening in the equity and currency markets," he told reporters after announcing the group's full-year financial performance here Wednesday.
Sime Darby Bhd's pre-tax profit for the financial year ended June 30, 2015 (FY15) fell to RM3 billion from RM3.96 billion a year ago.
Revenue declined to RM43.73 billion from RM43.91 billion previously,
The plantation division's earnings dropped by 39 per cent to RM1.15 million compared with a year before, largely due to lower average CPO price of RM2,193 per tonne
Mohd Bakke said the group was weighting options to strengthen its balance sheet to reduce its RM18 billion debts as well as gearing level.
He said the group's gearing ratio stood at 58 per cent as of June 30, 2015 after the acquisition of NBPOL and the company planned to reduce it to between 30 and 35 per cent.
However, the group has yet to come to a decision on financing option, he said.
"It is work in progress. We are definitely working on the exercise of strengthening our balance sheet. The intention is to come up with a gearing ratio that is more palatable to ourselves and our stakeholders," he said.
Mohd Bakke said Sime Darby was considering mergers and acquisitions within its core businesses as new growth opportunities.
"We have been receiving many offers from some of these players which consider partnering us, or buying over our assets," he said.