KUALA LUMPUR – Sime Darby Plantation Bhd (SD Plantation) recorded a turnaround in its financial performance reaping a net profit of RM1.2 billion for the financial year ended December 31, 2020 (FY20) compared with a net loss of RM200 million a year ago.
Revenue was better at RM13.08 billion compared with RM12.06 billion previously, according to its filing with Bursa Malaysia.
Both the group’s upstream and downstream segments recorded improved year-on-year (y-o-y) performances.
The group’s upstream segment enjoyed higher crude palm oil and palm kernel prices, while Sime Darby Oils, representing the group’s downstream segment, benefited from its on-going business transformation programme with improved margins and lower cost of production.
For the fourth quarter (4Q) ended December 31, 2020, the group’s continuing operations registered improved recurring profit before interest and tax, whilst its discontinued operations recorded an impairment loss in a joint venture amounting to RM236 million.
Its net profit for 4Q FY20 rose to RM149 million from a loss of RM58 million in the preceding year’s corresponding quarter, while revenue was higher at RM3.64 billion against RM3.37 billion previously.
“The higher palm oil prices were a blessing for all industry players in what had been one of the most challenging years in recent history for the global economy.
“SD Plantation is encouraged with its overall significantly better financial performance in 2020 and the group is hopeful that it will be able to carry this through in the current financial year," said chairman Tan Sri Megat Najmuddin Megat Khas.
He added that the positive news on the rollout of a number of Covid-19 vaccines globally, provides a glimmer of hope along the road to recovery.
Meanwhile, group managing director Mohamad Helmy Othman Basha said the group continues to mitigate challenges in 2021 such as extreme weather, the pandemic and labour shortage in operations.
“One of our immediate priorities is to allay the concern of stakeholders over the Withhold Release Order issued recently by the United States Customs and Border Protection.
“We are working with independent and credible organisations to address this matter expeditiously, keeping all our stakeholders abreast of our progress.
On outlook this year, the group is cautiously optimistic that it will achieve a satisfactory overall performance.
It remains focused on efforts to create more value for its stakeholders by continuously driving operational improvements throughout its operations and further improving the balance of profit contribution between its upstream and downstream segments in 2021.
Total dividends declared in 2020 amounted to 9.44 sen per share compared to 1.00 sen per share in 2019. – Bernama, February 18, 2021
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