Tan Sri Mohd Bakke Salleh (Bernama file photo)

26/05/2016 (Bernama) - Plantation conglomerate, Sime Darby Bhd, reported a third quarter pre-tax profit of RM791.65 million, up 26 per cent, from RM630.31 million recorded in the corresponding quarter mainly due to an asset monetisation exercise.

Revenue for the quarter ended March 31, 2016 rose to RM10.232 billion from RM9.997 billion it posted a year ago, the company announced today.

"The improved, year-on-year, earnings in the third quarter of the current financial year was mainly attributable to gains from the asset monetisation exercise," President and Group Chief Executive Tan Sri Mohd Bakke Salleh said.

For the cumulative nine months, pre-tax profit, however, slipped to RM1.727 million from RM1.993 million recorded in the same period last year but revenue jumped to RM32.234 billion from RM30.864 billion previously, it said.

Mohd Bakke said strong headwinds continued to weigh down the plantation division as the adverse weather of last year persistently hampered the production of fresh fruit bunches for the period under review.

He said the industrial division also remained challenged by lower deliveries and reduced margins as a result of weak coal prices while subdued consumer sentiment affected other businesses.

Mohd Bakke said the group continued to undertake deleveraging measures to improve its liquidity profile.

In addition to carrying out the first fund raising exercise under the Perpetual Subordinated Sukuk Programme with proceeds of RM2.2 billion, the group also completed the deconsolidation of two of its Singapore commercial properties for RM600.8 million as part of its asset monetisation exercise.

"Operationally, we continue to focus on productivity enhancements and innovative processes across the divisions."

Recently, he said Sime Darby Plantation commenced its first large scale planting of Genome Select high-yielding oil palm which increased oil yield by 15 per cent over current planting materials.

"By 2023, the division will have enough genome materials to meet all of its Malaysian replanting requirements," said Mohd Bakke.

Sime Darby's share price closed four sen better at RM7.49 today.