Sime Darby Plantation Registers a Net Profit of More Than RM1 billion for The Nine Months Ended 30 September 2020

Kuala Lumpur, 23 November 2020 – Sime Darby Plantation (SD Plantation) Group recorded improved year-on-year (YoY) results bolstered by higher crude palm oil (CPO) and palm kernel (PK) prices realised.

The Group’s downstream segment, Sime Darby Oils (SDO), tripled its profit before interest and tax (“PBIT”) to RM71 million in Q3 FY2020 versus RM24 million in the immediate preceding quarter, from improved performance particularly in Asia Pacific.

Key Highlights 

• 9M FY2020: Recurring PBIT increased threefold YoY from RM368 million to RM1,077 million. Higher non-recurring PBIT of RM444 million was largely made up of gains from assets disposals.
• Q3 FY2020: Higher realised prices and improved contribution from SDO compensated for the lower OER and FFB production.

Chairman, Tan Sri Dato’ Seri Haji Megat Najmuddin bin Datuk Seri Dr Haji Megat Khas said:
“Whilst we continue to monitor and address the impact of COVID-19 on our business, we are indeed encouraged to have recorded a higher year-on-year performance thus far. For the rest of the financial year, the Group will remain focused on delivering value to our stakeholders as we navigate through the current challenging environment. We will continue to prioritise the health and safety of our stakeholders, the job security of our employees, our commitment to sustainable practices, protection of human rights as well as our R&D and innovation initiatives.”

Group Managing Director, Mohamad Helmy Othman Basha, said:
“Despite the challenges posed by the pandemic on global markets, CPO prices continue to be supported in the second half of the year, whilst palm oil demand has improved and is expected to grow further in 2021. As a sector that provides essential products to the world, this industry is showing resilience amid global uncertainties. Given these challenging times, we urge more unemployed Malaysians to seize the job opportunities available in the palm oil industry today. As a measure to further mitigate the industry’s current labour shortage, we also hope the government will continue with its efforts to alleviate restrictions on foreign labour, whilst the Group continues to ramp up mechanisation and digitalisation efforts to increase productivity and reduce reliance on labour in the medium to long term.”

The Group’s financial performance for the financial year ending 31 December 2020 is expected to be better than last year.