Friday 29 Mar 2024
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KUALA LUMPUR (Nov 28): Sime Darby Bhd (Sime Darby) recorded a marginal 2.4% increase in its net profit to RM500.69 million for the first quarter ended Sep 30, 2014 (1Q15), against RM488.99 million a year ago, after most of the conglomerate’s business segments contributed higher earnings.

Revenue for the quarter under review, however, faltered slightly by 4.3% to come in at RM10.12 billion, versus RM10.58 billion a year ago.

Its earnings per share (EPS) for the quarter rose to 8.26 sen, from 8.14 sen last year, but no dividend was declared.

Sime Darby described the 1Q15 results as “a resilient financial performance” for a period with “highly challenging operating environment”.

The plantation division was the biggest profit contributor, achieving a profit before interest and tax (PBIT) of RM289.3 million for the quarter, representing a 14% increase from the year before.

This was attributed to better profit from the upstream segment, which saw higher sales volume and lower operating cost. This offset lower average crude palm oil price of RM2,187 per tonne, compared to RM2,331 in 1Q14. Fresh fruit bunch (FFB) was higher at 2.52 million tonnes for 1Q15, compared to 2.47 million tonnes last year.

On the other hand, the midstream and downstream operations recorded a loss of RM18.9 million in 1Q15, due to unfavourable sales mix from the company’s refineries in Europe and Indonesia.

The industrial division was disappointing after it recorded a 42% drop in PBIT to RM190.1 million, from RM327.2 million same period last year.

Sime Darby the lower PBIT in the segment was a result of lower equipment delivery and lower product sales to Australia mining customers. Meanwhile, operations in China and Malaysia remained upbeat, with the two seeing better PBIT year-on-year by 22% and 24% respectively.

For the motors division, Sime Darby recorded a 3% increase in PBIT to RM110 million, driven by seven fold improvement PBIT from Australia and New Zealand.

The property division saw its PBIT doubled from RM65.5 million last year, to RM137.1 million for the quarter under review, and has now an unbilled sales of RM2.2 billion.

Higher PBIT was thanks to a gain on the disposal of a 9.9% equity interest in Eastern & Oriental Bhd, for RM55.5 million. Excluding the disposal gain, the property division achieved 25% higher profits from Elmina East project, and contribution from the construction works at the Pagon Education hub.

Finally, the energy & utilities division recorded a 67% increase in PBIT to RM21.7 million in 1Q15, from RM13 million last year, due to higher profit from ports and water operations in China.

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