Wednesday, May 23, 2012

TDM upbeat on plantation arm performance - Bernama

State government-owned company TDM Bhd remains positive on its plantation division's performance this year despite the lower forecast for crude palm oil (CPO) production and CPO prices compared to last year, said chief executive officer Badrul Hisham Mahari. 

He said the company expects its production to be higher this year than last year as this year the stress cycle would be experience by the oil palm trees which occurs once every three or four years and would effecting their production. 

"In line with overall market expectation also, we forecast CPO prices for this year to be lower compared to 2011, but the impact on earnings would be cushioned by our transformation programme initiated in 2004," he told the media at the company's annual general meeting here today. 

"The operational efficiency which leads to improvements in productivity and yields via our plantation rehabilitation programme recorded the highest ever fresh fruit bunch (FFB) production at 625,765 metric tonnes and a yield of 19.44 tonnes per hectare last year," he added.

Badrul Hisham said these figures were an increase of 14 per cent and 15 per cent over 2010's FFB production and yield of 550,625 metric tonnes and 17.9 metric tonnes per hectare respectively. 

"Hence, we can see now our transformation programme has borne very fruitful results where we achieved record production, revenue and profit in financial year 2011," he said adding that the company now has a total of 39,033 hectares planted oil palm land both in Malaysia and Indonesia. 

Its revenue for the financial year ended Dec 31, 2011 rose 28 per cent to RM503.2 million with profit before tax surging 65 per cent to RM214.9 million as compared to RM329.8 million and RM130.2 million respectively in the previous financial year. 

Earnings per share have improved by 63 per cent to 66.32 per cent while per-share book value increased by 53 per cent to RM4.93. 

For its operations in Indonesia, he said TDM has planted a total of 6,574 hectares from the total of 20,000 hectares acquired in Kalimantan from the total package of 40,000 hectares of land. 

"We plan to plant 5,000 hectares a year in Kalimantan, so we will have land reserved to ensure our growth can be sustained for seven to eight years," he added. 

Meanwhile, for its healthcare division which contributed about 18 per cent to group earnings, Badrul Hisham said TDM would continue to operate with a 100-150 bed hospital, which has proven to be a successful model. 

"We will enhance our capacity and capability to provide the best secondary healthcare which is easily accessible and affordable to the community," he added. 

TDM owns four community specialist hospitals located in Selangor, Kuala Lumpur, Pahang and Terengganu.

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