Gearing Up For Tough Times In Oil Palm Industry

Group managing director and chief executive officer Datuk Wong Kuo Hea in pointing this out at the company’s annual and extraordinary meeting on Thursday said through the process of fine tuning the operation, they were able to reduce the number of workers, raise efficiency and productivity and reduce the usage of consumable goods in the factory and fertilizer in plantation.

These measures were necessary whilst waiting for the timber market to revive and oil palm crop season to reach its peak. The meetings were chaired by executive chairman Datuk Amar Abdul Hamed Sepawi.

“In oil palm plantations, the increasing use of mechanism in harvesting and the greater effort in loose fruit collection have resulted in higher productivity per man-hour,” he said.

Estate emphasis on good agriculture productivity, he said, had brought about better field and palm conditions, which reduced the cost of the product and development control. Datuk Wong said similar measures would be employed to maintain or enhance the operational efficiency and efficacy as the group moves forward.

gearing up for tough time in palm oil industry

On the current market outlook for both timber and oil palm sectors, he said plywood demand was expected to increase especially with the infrastructure works for the coming Olympics in Brazil.

“Demand for logs is expected to remain stable. Plywood demand in Japan is still slow but prices are believed to have hit the bottom,” he said.

Its palm oil sector, he said, was expected to produce higher fresh fruit bunch (FFB) with the growing mature palms.

Coupled with better crude palm oil (CPO) prices compared to 2015 and the projected rising trend of CPO prices, higher contribution of the palm oil sector to the group’s revenue and profit was anticipated.

Meanwhile, Datuk Amar Abdul Hamed reported that the group’s revenue for the financial year ended Dec 31, 2015 was RM1,048.3mil, 4% higher compared to the previous year, while pre-tax profit was RM234.2mil, up 39% from the level achieved in 2014.

Net profit after tax was RM191.5mil, 53% higher on a year-on-year basis.


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