MARKET DEVELOPMENT
Sime Darby Cautiously Optimistic Of Hitting Profit Target
Sime Darby Cautiously Optimistic Of Hitting Profit Target
30/05/2014 (Bernama) - Sime Darby Bhd is cautiously optimistic of achieving its net profit key performance indicator of RM2.8 billion or slightly better in its financial year ending June 30, 2014.
Group Chief Financial Officer Tong Poh Keow said growth would be supported by contribution from the property division and an estimated net gain of RM56.3 million through the disposal of Port Dickson Power.
"Our property division is doing well, the plantation division has its challenges, I think the biggest challenge for us is the industrial division," she told reporters after announcing the group's financial performance Thursday.
Tong added Sime Darby is looking to sustain its growth organically and reiterated that the group is on the lookout for acquisitions in its long-term strategy.
She said the group is working on the third phase of the Battersea Power Station project in London.
The phase, comprising 1,300 houses, 160-room hotel and 350,000 sq. ft. (about 32,516 sq. m.) retail and restaurant space plus additional leisure space, will be launched by end-2014.
Tong said the stronger ringgit affected crude palm oil prices .
The group's plantation and agri-business arm, Sime Darby Plantation Sdn Bhd, expects a five to six per cent lower fresh fruit bunch (FFB) production in its financial year ending June 30, 2014 compared to 10.13 million metric tonnes in the financial year ended June 30, 2013.
Managing Director Datuk Franki Anthony Dass said the lower production was mainly driven by prolonged dryness in Indonesia, adding the average CPO price for the remainder of its financial year is expected to be between RM2,450 and RM2,500 a tonne.
Average CPO price realised in the nine-month period ended March 31, 2014 was RM2,439 a tonne against RM2,338 a tonne in the same period last year.
"Even now, the current price has dropped to RM2,483 a tonne because demand from China and India has slowed down and then the bumper crop.
"The El Nino impact will be felt later," he said.
Group Chief Financial Officer Tong Poh Keow said growth would be supported by contribution from the property division and an estimated net gain of RM56.3 million through the disposal of Port Dickson Power.
"Our property division is doing well, the plantation division has its challenges, I think the biggest challenge for us is the industrial division," she told reporters after announcing the group's financial performance Thursday.
Tong added Sime Darby is looking to sustain its growth organically and reiterated that the group is on the lookout for acquisitions in its long-term strategy.
She said the group is working on the third phase of the Battersea Power Station project in London.
The phase, comprising 1,300 houses, 160-room hotel and 350,000 sq. ft. (about 32,516 sq. m.) retail and restaurant space plus additional leisure space, will be launched by end-2014.
Tong said the stronger ringgit affected crude palm oil prices .
The group's plantation and agri-business arm, Sime Darby Plantation Sdn Bhd, expects a five to six per cent lower fresh fruit bunch (FFB) production in its financial year ending June 30, 2014 compared to 10.13 million metric tonnes in the financial year ended June 30, 2013.
Managing Director Datuk Franki Anthony Dass said the lower production was mainly driven by prolonged dryness in Indonesia, adding the average CPO price for the remainder of its financial year is expected to be between RM2,450 and RM2,500 a tonne.
Average CPO price realised in the nine-month period ended March 31, 2014 was RM2,439 a tonne against RM2,338 a tonne in the same period last year.
"Even now, the current price has dropped to RM2,483 a tonne because demand from China and India has slowed down and then the bumper crop.
"The El Nino impact will be felt later," he said.