Hence, effective Jan 1, 2020, a three per cent windfall tax per tonne will be imposed on planters in the peninsula while for planters in Sabah and Sarawak, a 1.5 per cent windfall tax will be imposed if the price exceeds RM3,000 per tonne.SOP IS NOT AFFECTED YET.
From current market trend and consumption, CPO price is likely on the upward trend and may hit RM 3000. The next Quarter for SOP will reflect on the higher CPO price. Hopefully this will hit RM 4/4.5 range
my quesstimate for 2019 fourth quarter profit to reach 50-60 million range, 0% export tax,0% windfall profit tax, just a reasonable figure.In the 2017 final quarter ,when cpo price was high, but the production was about 15% lower, SOP still can managed 60 million profit.
this has something to do with extraction rate, sometime planters harvest too early,while fruits not in full ripeness. or sometime due to logistic problem , certain amount FFB from respective estates, were sold to nearby mills which belong to other people.
Primary Industries Minister Teresa Kok Suh Sim said the programme would start in Langkawi, followed by Labuan, Sarawak, Sabah and subsequently in Peninsular Malaysia.
"A preliminary study and engineering design for the upgrading of the blending depot has also been approved with an allocation of RM35 million. This will involve 35 depots and are expected to be ready in the first quarter of next year," she told reporters after the Ministry of Primary Industries’ gathering here, today.
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Kok said the launching ceremony for the programme would be officiated by the Prime Minister Tun Dr Mahathir Mohamad on Feb 20 next year.
She said the CPO price, which is now approaching RM2,800 per tonne, was expected to continue rising next year based on the positive trend, whereby the price was around RM1,700 per tonne in 2018 compared to now, as well as the high demand following the B20 implementation and the government's efforts to explore new markets to boost exports.
The increase in the CPO price would not only benefit the country's economy but also the industry especially smallholders, she said.
"The Christmas and Chinese New Year (celebrations) would see many countries importing palm oil from us and the implementation of the B20 programme would boost demand. If stock is low, price would go up,” she said.
Meanwhile, Kok said she would make a visit to Europe early next year to meet the commissioner and new parliament members of the European Union (EU) to present Malaysia's efforts and success in promoting sustainable oil palm industry.
"We want to present to them what Malaysia has done in the last two years. Europe wants sustainable palm oil and we are doing it, even the smallholders when the government helps them to get the Malaysian Sustainable Palm Oil (MSPO) certification. Our oil palm industry players replant forest trees and contributed to forest conservation," she said.
Highlighting one of Malaysia's efforts, Kok said the additional RM1 cess per tonne of palm oil produced would be collected and parked into a fund for green initiatives, which will be utilised for wildlife conservation purposes and green initiatives, especially replanting of forest trees.
She hoped the EU will accept and recognised Malaysia's green agenda and MSPO, thus import the commodity more as well as stop throwing accusations against palm oil.
On the MSPO certification, Kok said the target of 100% by Dec 31 was not achieved as the challenge was with the smallholders, however, they are now more aware of the need for the certification as well have shown interest following the promotion by the media.
She said industry players’ awareness on the certification had increased whereby 62.14% of the 5.85 million hectares of oil palm planted areas in Malaysia had achieved MSPO certification as at Dec 19 compared with only 17% when she headed the ministry.
Kok said she was confident that the target of 70% of the oil palm planted areas in Malaysia to be MSPO-certified could be achieved by February 2020.
SOP's earning performance has been overall unstable in last five years, whereby its earning per share overall fluctuated from 10.9 sen to 40.8sen. Its earnings mostly has been affected by high operating costs in the latest financial year. Dividend payout in the 2018 financial year totalled 6 sen per share, which corresponds to a dividend yield of 1.66%.
Cost cut and mechanisation lowered production cost We estimate SOP’s 9M19 all-in cost of production for its upstream ops at MYR1,665/t (-8% YoY). We understand the lower YoY cost was due to cost cutting measures undertaken and introduction of more mechanisation to counter rising wage bills. As for fertiliser, we understand SOP has applied ~90% of its full-year fertiliser requirement in 9M19 (9M18: ~85%).
SOP's earning performance was unstable in last five years,largely due to CPO selling price fluctuation,the price trend was from a high of 2900 and drop to a low of 1800, a product break- even or negative level.There were many reasons contributed to this phenomena.One of them was over production in Indonesia, building a glut of palm oil supply.To remove the glut,Indonesia introduced ,and mandated effect 2020January,to put into effect B30 biodiessel (30%palmoil content)program to be used in vehicles of the country.Further to this B40,B50 are on the testing pipe line, waiting to be enforsed.Malaysia will also introduce B20 biodiessel program.Industry sources ,estimated 10 million ton of oil would be used in this program.Thus the oil glut situation is now effectively reduced, or removed, CPO selling price is now finally back to normal.
1st SOP is an efficient planter now compared in 2017 2nd SOP lack of retailers, will slowly move up amd steady 3rd SOP is an fully intergrated + sustainable palm oil
Bloomberg reported that growing worries about production disruptions and brighter outlook for its biofuel use are keeping the world's most-consumed cooking oil on track for the best year in a decade. The third month CPO futures contract on Bursa Derivatives added RM67, or 2.2% to RM3,072 a tonne after estimates by the Malaysian Palm Oil Association showed output in Malaysia dropped 16.4% during Dec 1-20 from a month earlier.
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Posted by yfchong > 2019-12-15 10:02 | Report Abuse
OK now... Now kung fu no enuf