KUALA LUMPUR: Malaysia’s Sime Darby Bhd , the world’s largest palm oil planter by land size, posted a 14 percent year-on-year rise in its quarterly net profit as higher average prices of the tropical oil led to gains in its plantation division.
Sime Darby said in a statement that net profits rose to 1.14 billion ringgit ($283 million) in the fourth quarter ended June, from 1 billion ringgit in its corresponding year-ago quarter. Revenue stood at 11.7 billion ringgit versus 12.86 billion ringgit a year ago.
“The global economy continues to be subdued and growth remains sluggish. The rising prices of commodities, however, offer some optimism that business conditions may be recovering,” said the conglomerate in a local stock exchange filing.
“Nevertheless, the current volatile and uncertain environment will remain a challenge for the group.” Benchmark Malaysian palm oil prices averaged 2,555 ringgit per tonne over April-June, up from 2,209 ringgit in the corresponding period a year ago.
Sime Darby announced its quarterly results during the Kuala Lumpur stock exchange’s midday break. Its shares were trading 0.3 percent higher before the break, outperforming the benchmark index at 0.2 percent lower. ($1 = 4.0235 ringgit)
