01/05/2010 (Straits Times, Singapore) - SINGAPORE'S palm oil giant Wilmar International said on Monday it is boosting its capital expenditure this year to at least $1 billion as it seeks attractive investment opportunities for the group's future growth.

The world's largest listed palm oil producer also confirmed that it has scrapped plans for a listing of its Chinese operations in Hong Kong, citing unfavourable market conditions.

Chairman and chief executive Kuok Khoon Hong told reporters and analysts at a briefing that the uncertainty in the market meant the company was not able to get the price it wanted from investors.

Wilmar on Sunday reported a better than expected 18 per cent rise in fourth quarter net profit as commodities prices soared on the back of a global economic recovery.

The group posted a net profit of US$442 million, up from US$373.6 million a year earlier, while revenue rose 19 per cent to US$6.9 billion in the same period.

For the full year ended 31 Dec 2009, net profit rose 23 per cent to US$1.88 billion compared to the previous financial year while revenue dipped 18 per cent to US$23.8 billion.

Mr Kuok said the company plans to expand its operation in China. He did not elaborate on its future investment plans, but the company has previously said it was planning to invest at least $1 billion in Indonesia, China, and Africa.

Wilmar's stock closed 17 cents up at S$6.67 on Monday.