Sime Darby’s fourth quarter net profit fell 4 per cent to RM984 million and expects the crude palm oil price to remain strong for the rest of this year.

Conglomerate Sime Darby Bhd (4197) said its fourth quarter net profit slipped 4 per cent to RM984 million as it made less money from its plantation and utilities divisions.

However, it remains optimistic about its current financial year to June 30 2010, as palm oil prices are at reasonably good levels and there are signs of improvement in the property and consumer markets.

“We anticipate that the price of CPO (crude palm oil) will remain quite strong for the rest of this year. Our price range is between RM2,000 and RM2,200 for our current financial year,” Sime Darby president and group chief executive officer Datuk Seri Ahmad Zubir Murshid told reporters at a briefing in Kuala Lumpur yesterday.

He also said the group had no immediate plans to list its plantation unit.
It plans to raise RM4.5 billion using Islamic loans for this purpose.

For the three-month period to June 30 2009, the group said revenue fell 17 per cent to RM7.5 billion.

Its full year net profit dropped 35 per cent to RM2.3 billion while revenue eased 9 per cent to RM31 billion. The full year net profit was better than its target of RM1.9 billion.

Source : Business Times

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