oil palm

 
 

More durians heading for China with four new deals, says PLS Plantations

KUALA LUMPUR, March 31 — PLS Plantation Bhd’s joint venture with Shanghai-based Greenland Group has signed deals with four Chinese fruit distributors to sell its durian products and expand its export business. The four Chinese fruits…


Sime Darby Plantation gets takeover interest in loss-making Liberia operations

KUALA LUMPUR, March 20 — Sime Darby Plantation Bhd says it has received takeover interest from a few parties in its loss-making operations in Liberia in West Africa. Deputy managing director Mohamad Helmy Othman Basha said the planter has signed…


EU’s Delegated Act ‘discriminatory’, designed to hurt livelihoods of small farmers, minister says

KUALA LUMPUR, March 15 — Primary Industries Minister Teresa Kok has lambasted European Union’s (EU) Delegated Act where palm oil is classified as “high risk”, calling the act discriminatory and designed to hurt the livelihoods of millions of…


Ekovest buys 23% of PLS Plantations, diversifies into oil palm

PETALING JAYA: Ekovest Bhd is acquiring a 23.42% stake in PLS Plantations Bhd from Serumpun Abadi Sdn Bhd (SASB), a company controlled by Ekovest executive chairman Tan Sri Lim Kang Hoo, for RM76.5 million cash or RM1 per share to venture into oil palm plantation business.

In a filing with Bursa Malaysia, Ekovest said the proposed acquisition is to transform the group into a larger listed conglomerate with a larger portfolio of diversified businesses, in line with the strategy to reduce reliance on its existing businesses in construction, property development and toll operations.

PLS Group, via its 70%-owned subsidiary Aramijaya Sdn Bhd, is involved in the management, operation and maintenance of Ladang Hutan Ulu Sedili, a forest plantation project measuring 35,223ha in Johor.

As at March 31, 2018, PLS Group has a total of 12,346ha of oil palm cultivation land with total planted area of 10,921ha.

The proposed shares acquisition also comes with a profit guarantee in respect of the actual aggregate audited profit after tax and minority interests of Dulai Fruits Enterprise Sdn Bhd for the financial years ending 2020, 2021 and 2022 of not less than RM10 million.

PLS holds 70% equity interest in Dulai through Brighthill Synergy Sdn Bhd.

The proposed acquisition is expected to be completed by the first quarter of 2019 and will be financed with internal funds.

On Bursa Malaysia today, Ekovest rose 0.85% to close at 59 sen, while PLS was down 2.1% to 95 sen.


M’sian palm oil yields on alarming downtrend, says expert

KUALA LUMPUR, March 6 — Malaysian palm oil yields have been on an alarming declining trend for nine years, mainly due to mismanagement which led to lack of replanting, as well as rising labour and fertiliser costs, says an expert. ISTA…


Minister proposes to cap area for oil palm plantations at 6.5 million hectares

KUALA LUMPUR: The Ministry of Primary Industries will be presenting a proposal to the Cabinet this month to cap the area for oil palm plantations at about 6.5 million ha, up from the 5.85 million ha as at end-2018.

Minister Teresa Kok (pix) said this was expected to be achieved by 2023 based on the average annual expansion of plantations from 2013 to 2018.

“This move was made in order to dismiss accusations that oil palm plantations are the reason for deforestation.

“But, in order to achieve this, we have to work with various state governments,” she said when officiating the 30th annual Palm and Lauric Oils Conference and Exhibition, Price Outlook 2019 Conference and Exhibition (POC 2019) today.

Kok said palm oil players should also improve the research and development of seedlings, as well as boosting the productivity and yields of existing oil palm trees.

Kok said the ministry would also propose to the Cabinet to compel information on the areas under oil palm plantations to be made public.

“We need to be transparent. We hope the cabinet will approve the proposal,” she said.

Meanwhile, Kok said the government’s effort this year to expand the B10 and B7 bio-diesel programmes to the transport and industrial sectors was expected to raise palm oil consumption by 761,000 tonnes annually.

“This will help reduce the huge stockpile and lift the commodity prices,” she added.


Minister proposes higher cap on area for oil palm plantations

KUALA LUMPUR: The Ministry of Primary Industries will be presenting a proposal to the Cabinet this month to cap the area for oil palm plantations at about 6.5 million ha, up from the 5.85 million ha as at end-2018.

Minister Teresa Kok (pix) said this was expected to be achieved by 2023 based on the average annual expansion of plantations from 2013 to 2018.

“This move was made in order to dismiss accusations that oil palm plantations are the reason for deforestation.

“But, in order to achieve this, we have to work with various state governments,” she said when officiating the 30th annual Palm and Lauric Oils Conference and Exhibition, Price Outlook 2019 Conference and Exhibition (POC 2019) today.

Kok said palm oil players should also improve the research and development of seedlings, as well as boosting the productivity and yields of existing oil palm trees.

Kok said the ministry would also propose to the Cabinet to compel information on the areas under oil palm plantations to be made public.

“We need to be transparent. We hope the cabinet will approve the proposal,” she said.

Meanwhile, Kok said the government’s effort this year to expand the B10 and B7 bio-diesel programmes to the transport and industrial sectors was expected to raise palm oil consumption by 761,000 tonnes annually.

“This will help reduce the huge stockpile and lift the commodity prices,” she added.


FGV reports net loss of RM1.08 bln for FY18

KUALA LUMPUR: FGV Holdings Bhd reported a net loss of RM1.080 billion for the year ended Dec 31, 2018 (FY18) compared with a net profit of RM130.928 million recorded in 2017. In a filing with Bursa Malaysia, it also announced a decrease in revenue of RM13.467 billion in 2018 from RM16.921 billion registered in the […]


Sime Darby Plantation expects CPO prices to firm up

KUALA LUMPUR, Feb 28 — Sime Darby Plantation Bhd, the world’s largest oil palm plantation company by planted area, expects crude palm oil (CPO) prices to firm up from April to August this year to between RM2,250 and RM2,450 per tonne in…


Q4 net loss for Boustead Plantations

PETALING JAYA: Boustead Plantations Bhd registered a net loss of RM12.9 million for the fourth quarter ended Dec 31, 2018 (Q4), against a net profit of RM22.17 million in the same quarter in 2017.

The loss was attributed to the decline in palm product prices and increase in interest expense attributed to the acquisition of Pertama estates, the group said in Bursa Malaysia filing today.

Revenue for the quarter decreased 28.2% to RM156.56 million, compared with RM218.16 million in the previous corresponding quarter.

For the full year of 2018, the group posted a net loss of RM51.78 million, from a net profit of RM620.17 million, while revenue declined 23.2% to RM584.01 million, against RM760.1 million previously.

Boustead Plantations said average crude palm oil (CPO) selling price for 2018 was RM2,261 per metric tonne (MT), a decline of 20% compared with last year. Average palm kernel price dropped 29% to RM1,780.

Fresh fruit bunches (FFB) production for the year was 966,134 MT, consistent with last year’s FFB production of 973,513 MT.

Average oil extraction rate was 21.2%, while average kernel extraction rate was 4.4%, both marginally higher than 21% and 4.3% respectively in the previous year.

On its prospects, Boustead Plantations expects the coming year will be challenging, but noted that its earnings will be boosted by the recognition of the gain on disposal of land in Seberang Perai Utara upon completion.

“Although selling prices are expected to improve and growth in production is forecasted, the accounting treatment for oil palms under MFRS will dampen profits,” it added.

Meanwhile, it said fresh fruit bunch (FFB) production for 2019 is projected to see some improvement from the slow production in 2018 supported by the expected increase in crops from existing operations and the Pertama estates.

The proposed acquisition of more than 4,000ha of mature fields and a palm oil mill in Sandakan, Sabah, upon completion in second quarter 2019, will also contribute to the group’s performance.

However, the group said production in Sarawak is likely to remain weak given the operational difficulties in the region.

Boustead Plantations expects CPO price to climb towards RM2,400 per MT by early part of second quarter in line with expected stocks drawdown.

The biodiesel mandates of Indonesia, reduction of duty on crude and refined palm oil in India coupled with China’s positive outlook from the trade dispute with the US are some of the factors supporting CPO, it added.