Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: RHB

KUALA LUMPUR: RHB Research Institute said Sime Darby's clarification that no additional provisions needed to be made for the four key projects which were audited in the forensic audit, as the provisions incurred were estimated costs to completion, would assure investors.

Sime had on Wednesday, Sept 22, had also said it would make the required announcement as to the nature of the breaches of duties and inappropriate conduct once legal proceedings have commenced.

'However, while this clarification will assure investors that all provisions that need to be made have already been made for those four projects, it does not preclude any additional provisions that may be required for any of Sime's other oil and gas projects,' it said.

RHB Research has a market perform and fair value of RM8.90 on Sime Darby.

At 2.39pm, Sime is unchanged at RM8.34. There were 1.77 million shares done at prices ranging from RM8.33 to RM8.49.