KUALA LUMPUR: Sime Darby Plantations Bhd's earnings for the first quarter ended Sept 30, 2017 jumped to RM1.02bil from RM151mil a year ago.The company, which will be demerged from the Sime Darby Group and listed on Nov 30, reported on Thursday that revenue rose 25.6% to RM3.54bil from RM2.82bil. Earnings per share were 169.8 sen compared with 25.2 sen.“Profit before tax of RM1.24bil was higher by RM1.01bil due to the gain on sale of land to a fellow subsidiary, Sime Darby Property Bhd (SD Property) of RM676mil,” it said.Other factors were higher earnings from the upstream operations arising from the recovery of fresh fruit bunches (FFB") production from the effects of El Nino and higher average crude palm oil (CPO) price realised, a one-off reversal of accrual for donation of RM95mil, and lower finance costs due to lower borrowings.For the quarter under review, FFB production increased by 25% to 2.696 million tonnes and the average CPO price realised was 4% higher at RM2,693 per tonne a year ago.Upstream Malaysia registered higher profit of RM1.076bil, inclusive of the gain from sale of land to SD Property of RM676mil and a one-off reversal of accrual for donation of RM95mil.Profit of RM305mil (excluding the gain and one-off reversal) was 39% higher due to higher FFB production, sales volumes and CPO realised prices.FFB production increased by 23% to 1.553 million tonnes contributed to 28% higher CPO sales volume which compensated for the 4% decline in oil extraction rate to 20.2%.Upstream Indonesia reported profit of RM117mil, up 172% from RM43mil a year ago, mainly due to higher FFB production and CPO sales volume, as well as higher average CPO realised prices.Upstream Papua New Guinea NG's profit rose 46% to RM38mil due to higher FFB production and sales volume, as well as higher CPO selling prices. FFB production increased by 27% to 403,596 tonnes and sales volume was 90% higher. Average CPO price of RM2,690 per tonne was 7% higher.The Liberian operation reported higher losses mainly due to the increase in mature area thus higher depreciation as compared to the previous year. This was partially mitigated by the higher FFB production at 14,211 tones 3,369 tonnes a a year ago.Downstream operations posted a 5% drop in profit at RM70mil mainly due to lower profit generated by its refineries in Malaysia and Europe due to lower sales volume as well as lower margin due to higher feedstock costs, which was partially mitigated by the favourable performance of our Indonesian refinery due to higher sales volume and margin.

Source: The Star November 16, 2017 06:45 UTC