23/4/05 ( International Herald Tribune)  -  KUALA LUMPUR IOI, Malaysia's largest oil-palm plantation company, said it will increase profit in the year ending June 2007 as stronger demand for biodiesel bolsters palm oil prices.
 
Palm oil prices in Malaysia may gain as much as 200 ringgit, or $55, a metric ton, or 14 percent from the current price, by the end of the year, IOI's executive director, Lee Yeow Chor, said in an interview Friday in Kuala Lumpur.
 
"The outlook for the next financial year and next one or two years seems to be good," Lee said. "Besides the normal healthy market growth in palm oil for edible purposes, there is a fundamental shift in consumption."
 
A surge in crude oil prices has increased demand for alternative auto fuel such as ethanol to be blended into gasoline.
 
IOI stands to gain from rising palm oil consumption in China and India. Economic expansion in China and India, the world's biggest buyers of palm oil and soybean oil, boosts demand for edible oils and governments seek to promote the use of gasoline and diesel mixed with palm oil to help lower oil import bills and cut pollution.
 
Malaysia and Indonesia produce more than half of the world's palm oil, the biggest rival to soybean oil. Both countries had bumper crops in 2005.
 
Malaysia's production of the tropical oil jumped 12 percent in February to 1.05 million tons from the previous month, according to the Malaysian Palm Oil Board.
 
IOI's profit fell 25 percent to 228.8 million ringgit in the fiscal second- quarter ended Dec. 31 on lower palm oil prices.
 
Crude palm oil prices fell 9 percent to 1,381 ringgit per metric ton during the fiscal first half, while production of fresh fruit bunches dropped 3 percent, the company said in February.
 
Net income increased 29 percent to 902.2 million ringgit in the year to June 30, 2005. Profit will be "relatively flat" in the current year ending June, Lee said. "We don't think the growth will be strong this year."
 
IOI's palm oil yield will increase in the six months to June and its property unit will also do better than last year, helped by "very good sales" of its commercial properties and upmarket residential properties, he said.
 
IOI shares have risen 54 percent in the past year, more than the 8 percent gain in the benchmark Composite index.
 
Demand for palm oil will be boosted late this year or next year with the addition of two million tons of new capacity in biodiesel plants in 2007, Lee said.
 
Global demand for palm oil used in food preparation may increase 5 percent this year, matching the growth in previous years, he said.
 
IOI is planning to set up its biodiesel plant in Malaysia or Rotterdam, where it has a refinery "which has plenty of space and is closer to market," said Lee, who declined to provide the cost or the size of the plant.
 
IOI plans to spend 100 million ringgit to build a biodiesel plant, the Star newspaper reported on Dec. 14. The plant, which will be built in Malaysia or the Netherlands, will have a capacity of 150,000 tons of biodiesel.
 
The company will focus on acquiring more plantation land in Malaysia, Lee said. IOI has 160,000 hectares, or 395,370 acres, of plantations in Malaysia. It does not own any land in Indonesia.
 
"Even though Malaysia has got limited land available, we have been able to still acquire plantation land in Malaysia and that will be our preference," Lee said.
 
IOI has enough cash reserves to buy "at least tens of thousands of hectares of acquisitions of mature plantation land" in Malaysia, he said. "We are looking at a few such opportunities now."
 
 KUALA LUMPUR IOI, Malaysia's largest oil-palm plantation company, said it will increase profit in the year ending June 2007 as stronger demand for biodiesel bolsters palm oil prices.
 
Palm oil prices in Malaysia may gain as much as 200 ringgit, or $55, a metric ton, or 14 percent from the current price, by the end of the year, IOI's executive director, Lee Yeow Chor, said in an interview Friday in Kuala Lumpur.
 
"The outlook for the next financial year and next one or two years seems to be good," Lee said. "Besides the normal healthy market growth in palm oil for edible purposes, there is a fundamental shift in consumption."
 
A surge in crude oil prices has increased demand for alternative auto fuel such as ethanol to be blended into gasoline.
 
IOI stands to gain from rising palm oil consumption in China and India. Economic expansion in China and India, the world's biggest buyers of palm oil and soybean oil, boosts demand for edible oils and governments seek to promote the use of gasoline and diesel mixed with palm oil to help lower oil import bills and cut pollution.
 
Malaysia and Indonesia produce more than half of the world's palm oil, the biggest rival to soybean oil. Both countries had bumper crops in 2005.
 
Malaysia's production of the tropical oil jumped 12 percent in February to 1.05 million tons from the previous month, according to the Malaysian Palm Oil Board.
 
IOI's profit fell 25 percent to 228.8 million ringgit in the fiscal second- quarter ended Dec. 31 on lower palm oil prices.
 
Crude palm oil prices fell 9 percent to 1,381 ringgit per metric ton during the fiscal first half, while production of fresh fruit bunches dropped 3 percent, the company said in February.
 
Net income increased 29 percent to 902.2 million ringgit in the year to June 30, 2005. Profit will be "relatively flat" in the current year ending June, Lee said. "We don't think the growth will be strong this year."
 
IOI's palm oil yield will increase in the six months to June and its property unit will also do better than last year, helped by "very good sales" of its commercial properties and upmarket residential properties, he said.
 
IOI shares have risen 54 percent in the past year, more than the 8 percent gain in the benchmark Composite index.
 
Demand for palm oil will be boosted late this year or next year with the addition of two million tons of new capacity in biodiesel plants in 2007, Lee said.
 
Global demand for palm oil used in food preparation may increase 5 percent this year, matching the growth in previous years, he said.
 
IOI is planning to set up its biodiesel plant in Malaysia or Rotterdam, where it has a refinery "which has plenty of space and is closer to market," said Lee, who declined to provide the cost or the size of the plant.
 
IOI plans to spend 100 million ringgit to build a biodiesel plant, the Star newspaper reported on Dec. 14. The plant, which will be built in Malaysia or the Netherlands, will have a capacity of 150,000 tons of biodiesel.
 
The company will focus on acquiring more plantation land in Malaysia, Lee said. IOI has 160,000 hectares, or 395,370 acres, of plantations in Malaysia. It does not own any land in Indonesia.
 
"Even though Malaysia has got limited land available, we have been able to still acquire plantation land in Malaysia and that will be our preference," Lee said.
 
IOI has enough cash reserves to buy "at least tens of thousands of hectares of acquisitions of mature plantation land" in Malaysia, he said. "We are looking at a few such opportunities now."
 
 KUALA LUMPUR IOI, Malaysia's largest oil-palm plantation company, said it will increase profit in the year ending June 2007 as stronger demand for biodiesel bolsters palm oil prices.
 
Palm oil prices in Malaysia may gain as much as 200 ringgit, or $55, a metric ton, or 14 percent from the current price, by the end of the year, IOI's executive director, Lee Yeow Chor, said in an interview Friday in Kuala Lumpur.
 
"The outlook for the next financial year and next one or two years seems to be good," Lee said. "Besides the normal healthy market growth in palm oil for edible purposes, there is a fundamental shift in consumption."
 
A surge in crude oil prices has increased demand for alternative auto fuel such as ethanol to be blended into gasoline.
 
IOI stands to gain from rising palm oil consumption in China and India. Economic expansion in China and India, the world's biggest buyers of palm oil and soybean oil, boosts demand for edible oils and governments seek to promote the use of gasoline and diesel mixed with palm oil to help lower oil import bills and cut pollution.
 
Malaysia and Indonesia produce more than half of the world's palm oil, the biggest rival to soybean oil. Both countries had bumper crops in 2005.
 
Malaysia's production of the tropical oil jumped 12 percent in February to 1.05 million tons from the previous month, according to the Malaysian Palm Oil Board.
 
IOI's profit fell 25 percent to 228.8 million ringgit in the fiscal second- quarter ended Dec. 31 on lower palm oil prices.
 
Crude palm oil prices fell 9 percent to 1,381 ringgit per metric ton during the fiscal first half, while production of fresh fruit bunches dropped 3 percent, the company said in February.
 
Net income increased 29 percent to 902.2 million ringgit in the year to June 30, 2005. Profit will be "relatively flat" in the current year ending June, Lee said. "We don't think the growth will be strong this year."
 
IOI's palm oil yield will increase in the six months to June and its property unit will also do better than last year, helped by "very good sales" of its commercial properties and upmarket residential properties, he said.
 
IOI shares have risen 54 percent in the past year, more than the 8 percent gain in the benchmark Composite index.
 
Demand for palm oil will be boosted late this year or next year with the addition of two million tons of new capacity in biodiesel plants in 2007, Lee said.
 
Global demand for palm oil used in food preparation may increase 5 percent this year, matching the growth in previous years, he said.
 
IOI is planning to set up its biodiesel plant in Malaysia or Rotterdam, where it has a refinery "which has plenty of space and is closer to market," said Lee, who declined to provide the cost or the size of the plant.
 
IOI plans to spend 100 million ringgit to build a biodiesel plant, the Star newspaper reported on Dec. 14. The plant, which will be built in Malaysia or the Netherlands, will have a capacity of 150,000 tons of biodiesel.
 
The company will focus on acquiring more plantation land in Malaysia, Lee said. IOI has 160,000 hectares, or 395,370 acres, of plantations in Malaysia. It does not own any land in Indonesia.
 
"Even though Malaysia has got limited land available, we have been able to still acquire plantation land in Malaysia and that will be our preference," Lee said.
 
IOI has enough cash reserves to buy "at least tens of thousands of hectares of acquisitions of mature plantation land" in Malaysia, he said. "We are looking at a few such opportunities now."
 
 KUALA LUMPUR IOI, Malaysia's largest oil-palm plantation company, said it will increase profit in the year ending June 2007 as stronger demand for biodiesel bolsters palm oil prices.
 
Palm oil prices in Malaysia may gain as much as 200 ringgit, or $55, a metric ton, or 14 percent from the current price, by the end of the year, IOI's executive director, Lee Yeow Chor, said in an interview Friday in Kuala Lumpur.
 
"The outlook for the next financial year and next one or two years seems to be good," Lee said. "Besides the normal healthy market growth in palm oil for edible purposes, there is a fundamental shift in consumption."
 
A surge in crude oil prices has increased demand for alternative auto fuel such as ethanol to be blended into gasoline.
 
IOI stands to gain from rising palm oil consumption in China and India. Economic expansion in China and India, the world's biggest buyers of palm oil and soybean oil, boosts demand for edible oils and governments seek to promote the use of gasoline and diesel mixed with palm oil to help lower oil import bills