KUALA LUMPUR: Sime Darby Plantation Bhd's (SD Plantation) net profit catapulted 221.05 per cent to RM610.00 million in the third quarter (Q3) ended September 30, 2021, from RM190.00 million a year ago.

SD Plantation, in an exchange filing today, said this was driven by stronger recurring contribution from the upstream segment, which compensated for the decline in profits contributed by the downstream segment. 

Its Q3 revenue surged 59.1 per cent to RM5.06 billion from RM3.18 billion.

This was mainly fuelled by the upstream segment on the back of realised higher average of crude palm oil and palm kernel prices as well as improved oil extraction rate.

Chairman Tan Sri Megat Najmuddin Megat Khas said the group was on track for a strong close to the financial year ending December 31, 2021 (FY21).

"While high CPO price is certainly a boon for the whole industry, SDP also owes our strong performance to the management team and our employees across the world who delivered tremendous value in spite of numerous challenges," he said in a separate statement today.

He said the improving situation of Covid-19 globally augured well for industries and businesses everywhere.

"The group will continue to count on the support of our valued team as we prepare to leverage on the anticipated economic recovery ahead," he added. 

Group managing director Mohamad Helmy Othman Basha said the last 21 months had challenged the group, with the acute labour shortage compounded by restrictions on movement. 

"Thus, the group welcomes the decision by the government to allow the industry to recruit foreign workers again," he said.

Mohamad Helmy said the pandemic had put a spotlight on the critical need to accelerate the mechanisation, automation and digitalisation of plantation operations, to reduce dependence on manual labour. 

"We are spearheading this reinvention of plantation operations and will continue to ramp up our efforts to transform the nature of work in plantations. 

"At the heart of all our efforts is the well-being of our people. We are determined to make plantations work less arduous, but more efficient and productive for our workers. We are also intensifying our efforts to recruit more local workers. 

"As we progress further with our mechanisation initiatives, we expect to attract more Malaysians who are highly skilled," he added.

The group expects palm oil prices to remain elevated at least until the end of the year before a possible downward adjustment in the second quarter of 2022, when supplies are likely to be improved. 

"The high prices will help compensate for the impact of labour shortages on the group's Malaysian upstream production," it said.

Demand is expected to remain strong as more countries ease their Covid-19 restrictions, bringing back earlier suppressed demand. 


"Barring any unforeseen circumstances, we expect an overall strong financial year performance for 2021," it said.

Calvin comments:

CPO prices Jumped more than 200% from Rm1,700 to Rm5,400 a Ton. Now we see Simedarby Plant profits mirror price rise of Cpo 

See

Sime Darby Plantation Bhd's (SD Plantation) net profit catapulted 221.05 per cent to RM610.00 million in the third quarter (Q3) ended September 30, 2021, from RM190.00 million a year ago.

A RISE OF 221.05%

SD Plantation, in an exchange filing today, said this was driven by stronger recurring contribution from the upstream segment, which compensated for the decline in profits contributed by the downstream segment. 

Its Q3 revenue surged 59.1 per cent to RM5.06 billion from RM3.18 billion.

This was mainly fuelled by the upstream segment on the back of realised higher average of crude palm oil and palm kernel prices as well as improved oil extraction rate.

Read again

This was mainly fuelled by the upstream segment

YES! IT IS PRIMARILY DUE TO THE UPSTREAM HIGH PRICES OF FFB (FRESH FRUIT BUNCHES) & CRUDE PALM OIL (CPO) PRICES

Downstream?

See

which compensated for the decline in profits contributed by the downstream segment. 

Correct:

High wheat & palm oil prices caused a loss in Mflour, Hupseng biscuits & others 

All bread, biscuit, ice-cream, cakes, instant noodles will suffer as they as down stream businesses

SO GO FOR UPSTREAM PRIMARY PRODUCER OF PALM OIL FFB & CPO

THE MORE THE BETTER

THE WORD UPSTREAM REFERS TO STREAM

Definition of stream

 (Entry 1 of 2)

in other words

To "STREAM" is to SEE "LIQUID MOVING"

IN THIS CASE PALM OIL MOVING AT ITS SOURCE

"THE PLANTED TREES"

THE MORE STREAMS THERE ARE AT THE SOURCE THE BETTER

WHEN CALVIN VISITED KENYIR DAM (TRENGGANU)  YEARS AGO IT TOOK US RIDING ON A HOUSE BOAT 5 LONG HOURS FROM ONE POINT TO ANOTHER

KENYIR DAM IS SUCH A HUGE BODY OF WATER SO I ASKED THE BOATMAN , "WHY?"

"KENYIR DAM IS FED BY 50 STREAMS OR RIVERS OF WATER" HE REPLIED

"WOW!" NOT ONE OR TWO STREAMS (RIVERS) BUT 50 (FIFTY!)" THAT A LOT!

SO AS WE SAID BEFORE WE SAY AGAIN

GO FOR UPSTREAM PALM OIL STOCKS WITH THE LARGEST LAND BANKS

THESE ARE SOME EXAMPLES

1) SIMEDARBY PLANT (OVER 800,000 ACRES)

2) FGV (OVER 400,000 ACRES)

3) SOP (SARAWAK OIL PALM) 300,000 ACRES

4) THPLANT 240,000 ACRES

5) BPLANT 220,000 ACRES

6) JAYA TIASA 206,000 ACRES PALM OIL & 1.9 MILLION ACRES FOREST CONCESSION

7) TSH (GOT 3 RIVERS: EKOWOOD WHICH IT TOOK PRIVATE, 2ND TOP HOLDER OF INNOPRISE PLANT & ITS OWN PALM OIL ESTATES

8) TAANN (GOT ITS OWN PALM OIL & TIMBER LANDS PLUS TOP HOLDER OF SWKPLANT

SEE AGAIN

Another examples are During Rainy Season

Rain is Free

BUT COLLECTING IT DEPENDS ON THE SIZE OF THE CONTAINER (SO ARE OIL PALM ESTATES: THOSE WITH MORE OIL PALM TREES WILL GIVE THE BEST SUM TOTAL AMOUNT OF YIELD

See

How much water can contain?

THIS ONE BIGGER BUT STILL NOT ENOUGH

THIS ONE BELOW BEST! 

WARM REGARDS

Calvin Tan

Please buy or sell after doing your own due diligence or consult your remisier/fund manager

Thet say, "SUCCESS BEGETS SUCCESS"

In year 2019 Petronas gave Rm30,000,000,000  for Upstream OGSE Maintenance

That was where we made "CHUN CHUN CALLS"

THE UPSTREAM MAINTENANCE STOCKS GONE UP 100% TO 500% LATER

NOW GAME OVER FOR THEM AS CRUDE OIL YET TO REACH USD100 (WAS USD140)

NOW IS THE TIME FOR PALM OIL AS CPO HAS BREACHED THE UNBELIEVABLE RM5,000 BARRIER 

SO GO FOR PALM OIL UPSTREAM PLAYERS!

ABOVE IS ONLY ONE OF 50 STREAMS FLOWING INTO TASEK KENYIR