Friday 29 Mar 2024
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KUALA LUMPUR (Nov 30): Sime Darby Plantation Bhd (SD Plantation) executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh said the group expects the price of crude palm oil (CPO) to range between RM2,500 to RM2,600 per tonne in the near term.

"As far as we are concerned, we are looking at a price range of RM2,500 to RM2,600 [per tonne] in the near term which is right up till end of the year, and moving into 2018 we expect the price band to move higher... this is because we are going into the low cropping months, and the fundamentals of the business is something very much grounded on very long-term demand," he told reporters at a news conference in conjunction with the listing of SD Plantation, Sime Darby Property Bhd and Sime Darby Bhd as three pure plays today.

Bakke shared that the present gearing ratio of SD Plantation stood at 60%.

"We expect the gearing level to reduce by 1% to 2% by the end of the financial year [ending June 30, 2018]," he said.

Bakke was the former president and group chief executive officer of Sime Darby before its de-merger exercise.

On whether there would be a change in management style at SD Plantations compared to the old Sime Darby that housed the property, logistics, motors and healthcare businesses, Bakke said no as most of the key management of the plantations business is mostly unchanged.

"We have the same line-up of individuals. It's just looking at the focus of the business now that would be the big shift.

"Other than that, I think it is important to try to get the most out of everyone [on the team] that is important, and everybody understands his or her individual role," he said.

SD Plantation shares were down 58 sen (10.4%) to RM5.01 at noon market close today, with 11.1 million shares traded and for a market capitalisation of RM34.07 billion.

 

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