Sime Darby Plantation Bhd registered a profit before interest and tax (PBIT) of RM3.68 billion, nearly double the PBIT of RM1.85 billion in FY2020. Net profit for the period increased 90% YoY to RM2.26 billion, compared to RM1.19 billion in the previous year.
In a statement, it said that the group’s strong performance in FY2021 was attributed to higher realised crude palm oil (CPO) and palm kernel (PK) prices as well as better oil extraction rates (OER) which compensated for lower fresh fruit bunch (FFB) production. FFB production was impacted by the prolonged labour shortage in the Malaysian palm oil industry.
It said that in the fourth quarter of FY2021 (4Q FY2021) the Group more than tripled its PBIT and net profit year-on-year (YoY) to RM1.08 billion and RM468 million respectively, representing a 224% and 214% increase from the previous corresponding quarter.
In 4Q FY2021, the Group’s Upstream segment recorded a PBIT of RM958 million, 173% more than 4Q FY2020’s PBIT of RM351 million. This strong showing was supported by higher realised CPO and PK prices which increased from an average of RM2,664 to RM4,179 and from RM1,673 to RM3,363 per metric tonne (MT) respectively. Furthermore, OER improved to 21.79% from 21.35% in 4Q FY2020.
The Group’s Downstream segment, Sime Darby Oils, also rebounded from a PBIT of RM7 million in 3Q FY2021 to a record quarterly PBIT of RM287 million in 4Q FY2021. This also represents a 42% YoY improvement from RM202 million recorded in the previous year.
The improvement was mainly attributable to improved sales volumes in its European operations and higher margins from its Asia Pacific bulk operations.
Chairman, Tan Sri Dato’ Seri Haji Megat Najmuddin bin Datuk Seri Dr Haji Megat Khas said: The Group delivered an outstanding set of results for FY2021, thanks in large part to the tenacity and resilience of our people in overcoming the numerous challenges we faced throughout the year. I am proud of the dedication and hard work of our employees across our operations and whilst challenges remain, I am confident that their passion will carry us through 2022.
The Plantation company said that Group expects palm oil prices to remain elevated, at least throughout the first half of 2022 as supplies are only anticipated to increase in the second half of the year in line with the high-crop season. With the recent decision by the Malaysian Government to lift the freeze on the intake of foreign workers which has been in place since June 2020, the Group is cautiously optimistic that this may provide further support for its FFB production, particularly from its Malaysian operations to increase in the second half of the year, in line with palm oil’s typical peak production period.
The statement said that Group expects palm oil prices to remain elevated, at least throughout the first half of 2022 as supplies are only anticipated to increase in the second half of the year in line with the high-crop season. With the recent decision by the Malaysian Government to lift the freeze on the intake of foreign workers which has been in place since June 2020, the Group is cautiously optimistic that this may provide further support for its FFB production, particularly from its Malaysian operations to increase in the second half of the year, in line with palm oil’s typical peak production period.
