28/06/2011 (Bernama) - Sawit Kinabalu Sdn Bhd has made a payment of RM50.23 million in dividend to the Sabah state government today.

Group managing director, Othman Walat, said the company recorded a pre-tax profit of RM201.5 million last year due to favourable palm oil prices.

"We are optimistic this year will be better as the prices of crude palm oil continue to be bullish," he said at the ceremony to hand over the dividend to Chief Minister Datuk Seri Musa Aman, who is also state finance minister.

Othman said the company declared dividends worth RM3 million each for its Tongod and Kalabakan plantations.

He said an advanced payment of RM9 million would be made to smallholders in Bagahak, Lahad Datu this year, while another RM250,000 would be paid to the Silabukan smallholders.

"The management is confident of meeeting the government's expectation of the company, which is to perform as an investment arm that is fully prepared and able to support the state's effort to achieve its development plans," he said.