Sime Darby Plantation Q2 profit plunges 70%

KUALA LUMPUR: Sime Darby Plantation Bhd posted a 70% plunge in second-quarter net profit today, due to lower crude palm oil and palm kernel prices.

Net profit came in at RM129 million for the quarter ended December, compared with RM429 million a year earlier, the world’s largest palm oil planter by land size said.

Revenue fell to RM3.5 billion from RM4.1 billion.

Declining inventories and a reduction in India’s import duties on palm oil would help the company’s performance going forward, managing director Bakke Salleh said in a statement.

“Despite an overall increase in our fresh fruit bunch production and oil extraction rate, the palm oil industry continued to weather prevailing low crude palm oil and palm kernel prices, arising from the US-China trade war, as well as the relentless negative sentiment on palm oil from Europe,” he added.

Shares of Sime Darby Plantation were 0.2% higher before the break, outperforming the benchmark stock index which was down 0.2%.

Benchmark palm oil prices were last up 0.8% at RM2,149 a tonne.