24/6/06 (The Star) - PETALING JAYA: TSH Resources Bhd is banking on its soon-to-be-completed palm oil refinery in Kunak, Tawau, to fuel the company's growth in the near future.

Managing director Datuk Kelvin Tan Aik Pen said the company's investment in downstream capabilities, such as the 850,000-tonne capacity refinery, and acquisition of land in Indonesia during the past two years, was beginning to bear fruit.

“Although we are not allowed to say in certain terms, we are confident our profit and revenue growth will be in double digits and our earnings will surprise many analysts,” he said after the company AGM yesterday.

Tan said the refinery in Kunak would be operational by year-end.

He said it was strategically located and integrated with biomass power generation to allow the company to generate its own power.

“Our mid- to long-term plans are to optimise efficiency with the refinery and move downstream,” he said, adding that TSH also operated four palm oil mills.

Tan said the company was not planning to acquire more land because it had 30,000ha which had not been planted with the crop yet.

“We are gradually increasing the size of our land planted with oil palm but this is for the future growth of the company,” he said, adding that TSH now had 9,000ha of matured oil palm plantation.

For the financial year ending Dec 31, TSH declared an interim tax-exempted dividend of 5 sen per share to be paid out from the company's tax-exempted profit.