KUALA LUMPUR – Sime Darby Plantation Bhd’s (SDP) net profit increased 10% to RM2.49 billion for the financial year ended December 31, 2022 (FY2022) from RM2.26 billion last year on the back of a record performance by the group’s downstream operations, Sime Darby Oils (SDO).
Revenue rose to RM21.03 billion versus RM18.70 billion, the company told Bursa Malaysia.
“SDP had achieved a profit before interest and tax (PBIT) of RM859 million in FY2022, 61% higher than the previous year.
“Meanwhile, higher average realised crude palm oil (CPO) price, a 20% increase compared to the previous year, mitigated the 10% decline in fresh fruit bunch (FFB) production,” it said.
SDP said its FFB production in FY2022 was particularly challenged in Malaysia, the impact of which was partially compensated by better production in its operations in Indonesia as well as Papua New Guinea and the Solomon Islands.
As such, SDP anticipates that with the expected arrival of a full complement of workers by the end of June 2023, its Malaysian operations will see improved performance in FY2023.
The planter has approved a final dividend of 6.04 sen per share for the financial year to be paid on May 15 this year. The entitlement date is April 28.
Together with the interim dividend of 10 sen per share paid on December 18, 2022, this would translate into a single-tier dividend of 16.04 sen per share for FY2022.
For the fourth quarter ended December 31, 2022 (4Q FY2022), SDP’s net profit increased by 20% to RM562 million from RM467 million previously, despite a 2.0% and 4.0% decline in FFB production and realised CPO prices respectively compared to the previous year’s corresponding period.
Chairman Tan Sri Megat Najmuddin Megat Khas said the performance was a promising start as SDP has delivered a commendable performance in FY2022 and has been cleared by the United States Customs and Border Protection (USCBP) to resume exports to the US.
“We have come out better and stronger from this challenging period. I am truly proud of what we have achieved, and I believe we are now well positioned to deliver even greater value to our shareholders whilst upholding our unwavering commitment to sustainable development,” he said in a statement.
Meanwhile, group managing director Mohamad Helmy Othman Basha said SDP has emerged from the pandemic stronger and with an exciting new outlook.
“We have launched our net zero roadmap to achieve clear goals and targets by 2030 and 2050. A new drive to mechanise, automate and digitalise has delivered promising results.
“And of course, the tremendous effort undertaken by my colleagues across the group to address the USCBP’s findings has delivered results, restoring our reputation as a leader in all areas of sustainability,” said Mohamad Helmy.
On its outlook for the year, SDP expects CPO prices to hold at current levels for the first quarter of 2023, on the back of continued strong demand due to price advantage when compared to alternative oils and supply concerns resulting from Indonesia’s anticipated higher biodiesel mandate as well as tighter export policies.
SDP also expects its FFB production in Malaysia to improve in 2023 with the arrival of more foreign workers in Malaysia, particularly harvesters. – Bernama, February 17, 2023
