KUALA LUMPUR: Sime Darby Bhd’s net profit jumped 78.5 per cent to RM1.09 billion in the first six months ended Dec 31 2016 from RM609 million a year ago.
Group revenue increased two per cent to RM22.44 billion from RM22 billion, Sime Darby said in a filing to Bursa Malaysia today.
Its net profit for the second quarter more than double to RM644 million from RM285 million previously on a stronger performance from its plantations segment. This was due to the increase in crude palm oil (CPO) prices and better production of fresh fruit bunches.
Group revenue for the quarter rose to RM12.34 billion, from RM11.83 billion a year ago.
Sime Darby declared a dividend of 6 sen per share, payable on May 5.
“This significant improvement in our earnings can be attributed largely to the increase in CPO prices and better production of fresh fruit bunches (FFB) over the period in review,” Sime Darby president and group chief exceutive Tan Sri Mohd Bakke Salleh said in a separate statement.
The group’s motor operations in China saw an increase in profitability, due to the luxury and super luxury segments.
However, its motor operations in Vietnam saw a 71 per cent decline in profit before interest and tax, due to the changes in the special consumption tax there.
Sime Darby’s property division saw an increase in profitability, largely attributable to the RM95 million contribution from the Battersea Power Station project and a gain of RM58 million on compulsory land acquisition for the Damansara–Shah Alam Elevated Expressway.
The Battersea project, in which Sime Darby has a 40 per cent stake, recognised its maiden profit from the completion of two residential block units under Phase 1.