Thursday 28 Mar 2024
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KUALA LUMPUR (May 25): Sime Darby Bhd saw its net profit for the third quarter ended March 31, 2016 (3QFY16) surge 60% to RM663.44 million or 10.5 sen a share, from RM414.62 million or 6.68 sen a share a year ago, due to its asset monetisation exercise.

The exercise involved the deconsolidation of the property division’s two subsidiaries in Singapore for RM406.3 million. This, coupled with gain on compulsory land acquisition for the Damansara–Shah Alam Elevated Expressway and West Coast Expressway of RM138.7 million, contributed to the net profit jump.

In a filing with Bursa Malaysia this afternoon, Sime Darby recorded 3QFY16 revenue of RM10.23 billion, which is 2.3% higher than its 3QFY15 revenue of RM10 billion.

For the nine months ended March 31, 2016 (9MFY16), Sime Darby reported a net profit of RM1.27 billion or 20.35 sen a share, which was 10.9% lower than its 9MFY15 net profit of RM1.43 billion or 23.33 sen a share, mainly due to the drop in its plantation division's profitability, as a result of lower average crude palm oil price.

Sime Darby’s industrial division’s 9MFY16 net profit was also badly affected by low coal prices, while its motors division also reported a drop in profitability on lower contribution from Malaysia, Australia and New Zealand, coupled with startup losses incurred in Taiwan.

Revenue for 9MFY16 came in 4.4% higher at RM32.23 billion, compared with RM30.86 billion a year ago.

Sime Darby’s president and group chief executive Tan Sri  Mohd Bakke Salleh said the group will continue to focus on productivity enhancements and innovative processes across divisions.

“Recently, Sime Darby Plantation commenced its first large scale planting of Genome Select high yielding oil palms, which is capable of delivering at least 15% increase in oil yield over current planting materials.

“By 2023, the division will have enough genome materials to meet all of its Malaysian replanting requirements,” he said in a statement today.

At the midday break, Sime Darby rose 0.27% or 2 sen higher at RM7.47, with 1.53 million shares done, for a market capitalisation of RM47.14 billion.

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