Profit slides at Malaysia's Sime Darby

OREANDA-NEWS. August 28, 2015. Malaysian conglomerate Sime Darby saw its profit slide for the 2014-15 fiscal year ending 30 June because of weak commodity markets. Sime Darby regularly exports palm oil to Europe through its wholly-owned Netherlands-based subsidiary Unimills.

Profit for the year fell by 31pc to 2.31bn ringgit (\\$545mn) compared with a year earlier. Its revenues were slightly lower at 43.72bn ringgit compared with 43.9bn ringgit the previous year. Its plantation division posted a 26pc lower pre-tax profit of 489.4mn ringgit for the fourth quarter because of lower average crude palm oil prices.

Palm oil prices have fallen to a near seven-year low this month to 1,863 ringgit/t, weighed down by weaker commodity prices and concerns about the slowing Chinese economy. Prices have fallen about 16pc so far this year.

"Crude palm oil and coal prices have been on a downward trend and the challenging business environment has resulted in subdued demand in most of our business activities, thus culminating in a weaker set of earnings," Sime Darby said.