KUALA LUMPUR, May 20 — Sime Darby Plantation Bhd’s net profit rose 20 per cent year-on-year (y-o-y) to RM562 million in the first quarter ended March 31, 2021 (1Q21) from RM468 million in the same period last year

Revenue increased 21 per cent y-o-y to RM3.67 billion from RM3.04 billion previously.

In a filing with Bursa Malaysia today, the company said the performance was driven by favourable crude palm oil (CPO) prices, increased production and improved downstream performance.

"In the same period, the company’s downstream operations, Sime Darby Oils, recorded a 20 per cent increase in PBIT (profit before interest and tax) totalling RM107 million, primarily attributable to improved performance in the Asia-Pacific region,” it said.

It said the company’s upstream performance also improved to a PBIT of RM543 million versus RM288 million in 1Q20 on the back of sustained higher CPO and palm kernel prices as well as increased fresh fruit bunch production.

On CPO prices outlook, Sime Darby Plantation said it expected the price to soften in the second half of 2021 as production increases.

"CPO prices in the first quarter were driven primarily by record-high prices of substitute oils,” it said.

On the operational front, Sime Darby Plantation said it anticipated improved production this year while sustaining its efforts to increase efficiency and productivity through digitalisation, automation and mechanisation.

"Barring any unforeseen circumstances, Sime Darby Plantation expects its performance for the financial year ending Dec 31, 2021 to be promising,” it said.

Chairman Tan Sri Megat Najmuddin Megat Khas said he is confident that the company is on track to achieve its financial targets for the rest of FY2021 following the strong performance in Q1.

"With the current spike in Covid-19 infection cases in certain parts of the world, including Malaysia, we are cognisant of the continuing risks and threats from the pandemic,” he said.

He said the company would remain vigilant in safeguarding its operations and employees, even as the current global rollout of vaccines progresses.

Group managing director Mohamad Helmy Othman Basha said although the company saw improved results from Sime Darby Oils in the Asia Pacific, demand had yet to fully recover from the impact of Covid-19.

"The group is working with several parties to address the withhold release order that was imposed by the United States (US) Customs and Border Protection at the end of 2020 and a third-party assessor had also been appointed to undertake a comprehensive review of all its Malaysian operations,” he said.

He said the exercise is expected to be completed in June this year and the company is committed to protect the rights and safety of its workforce regardless of race, nationality or gender.

"As such, we are focused on ensuring safe working and living conditions for all our employees,” he added. — Bernama