Latest news with #MohamadHelmyOthmanBasha
Sinar Daily
08-08-2025
- Business
- Sinar Daily
SD Guthrie achieves strong first half with RM1.07 billion net profit
SHAH ALAM - SD Guthrie Berhad delivered a strong performance for the first half of FY2025, reporting a net profit of RM1.07 billion, a 71 per cent year-on-year (YoY) increase from RM626 million in the same period last year. For the second quarter alone, net profit rose 22 per cent to RM505 million. The Group's outstanding results were largely driven by its Upstream segment, which saw profits double on the back of stronger average realised prices for crude palm oil (CPO) and palm kernel (PK), up three per cent and 50 per cent YoY respectively. Fresh fruit bunch (FFB) production also rose by four per cent, with growth recorded across all regions. In contrast, the Downstream segment, SD Guthrie International (SDGI), recorded a 44 per cent decline in profit before interest and tax (PBIT) in 2Q FY2025, impacted by weaker demand and tighter margins in Asia Pacific and Europe. However, its Oceania operations achieved solid performance, supported by higher sales and improved margins. SD Guthrie stays focused on long-term growth. Following a strong first half, SD Guthrie is staying focused on long-term growth despite global uncertainties. Its chairman, Tan Sri Dr Nik Norzrul Thani, said that continued progress in the Group's operational excellence, as well as growing momentum in its new Industrial Development and Renewables segments, will help future-proof the business. 'Moving into second half of FY2025, the global economic and operating environment remains volatile and unpredictable. As such, the meaningful progress made in our operational excellence initiatives, and the steady uptick in activities within the new Industrial Development segment and continuous progress made in the Renewables sector, will help to future proof the Group. "I am pleased with Guthrie's momentum and am confident that our disciplined approach to driving measurable results will deliver long-term and sustainable value to shareholders,' he said in a statement. Meanwhile, Group Managing Director Datuk Mohamad Helmy Othman Basha said that the Group's solid results reflect the strength of its strategy and execution. As Guthrie expands into new growth areas, including national development-linked projects, it remains committed to responsible collaboration. 'The Group's performance in this period bears testament to our robust strategy and disciplined execution, as we continue to prioritise operational excellence. Even as our core business segments regain momentum, the new and expanded strategic focus to pursue broader growth initiatives is starting to take shape. "As we expand into our new pillars on the back of the national development agenda, we are committed to ensuring the collaborations on our land are well-strategised and take into consideration the development potential of the area and also the impact to surrounding communities. "The recent Memorandum of Understanding (MoU) with Permodalan Negeri Selangor Berhad (PNSB) to co-develop a Food Security and Edu-Tech Hub on Carey Island is a prime example of our commitment. "Here the focus is not only to stimulate economic growth on the island, but also to ensure the existing community and rich heritage are protected. Guthrie values opportunities to be involved in such meaningful developments,' he said. SD Guthrie is committed to responsible collaboration. After a strong first half of 2025, SD Guthrie is preparing for a more uncertain second half. The Group expects higher fresh fruit bunch (FFB) production, thanks to better weather and improved productivity across its plantations in Malaysia, Indonesia, Papua New Guinea, and the Solomon Islands. With new business areas gaining momentum, SD Guthrie is confident it can stay strong and grow, even as market conditions remain challenging.
The Star
07-08-2025
- Business
- The Star
US tariffs unlikely to impact SD Guthrie exports
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha. KUALA LUMPUR: SD Guthrie Bhd does not expect any near-term impact from the US tariffs, says group managing director Datuk Mohamed Helmy Othman Basha. According to him, while it does export to the United States, it only consists of very small volumes – about 2% only. 'The fact is, products can only come from Malaysia or Indonesia, and as Indonesia has the same tariff rates, we don't see any impact at all, at least not in the immediate term,' he told reporters after the group's second-quarter results announcement here yesterday. The palm oil producer posted a higher net profit of RM505mil for the second quarter ended June 30, 2025 as well as a higher revenue of RM5.17bil, compared to RM4.97bil in the same quarter last year. Mohamed Helmy said the increase in earnings was on the back of strong results from its upstream segment. 'We have a bit of a double tailwind in the sense that we expect production to remain strong for our operations. We also expect crude palm oil (CPO) prices to stabilise at around RM4,000 and RM4,100 for the rest of the year,' he noted. The group's downstream segment, however, faced a number of headwinds. This segment was the only negative in its results, registering RM126mil in profit before interest and taxes, a decrease from the RM225mil posted in the same quarter last year. The drop was due to weaker profits generated by the refineries and operations across Asia Pacific and Europe, impacted by both lower margins and reduced volume demand, further compounded by the lower share of profits from joint ventures. For the six-month period ended June 30, 2025, SD Guthrie's net profit rose to RM1.07bil against RM626mil in the same period last year, while revenue grew to RM9.99bil from RM9.31bil in the first half of 2024. Similar to its quarterly earnings, the increase was mainly due to strong upstream operations, which resulted from higher year-on-year (y-o-y) average realised CPO and palm kernel prices which rose by 3% and 50% y-o-y to RM4,146 and RM3,247 per tonne, respectively. On top of that, its fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production. Moving forward, Mohamed Helmy said he expects the upstream segment to carry more of the growth for this year. He opined that the rest of the year will continue to have a positive trajectory. Among the key drivers include the two business pillars the group has been focusing on lately – industrial parks and renewable energy. 'These two pillars have gained traction, but there is still a lot of work in the pipeline. 'Some have translated into joint ventures and we expect profit recognition by the third quarter,' he said. He added that by 2030, the plan is that the two business pillars will contribute nothing less than RM700mil to RM800mil to the group's bottom line. 'That should be close to about 30% to the overall contribution' he noted. Meanwhile, Mohamed Helmy said while the group has been aware of the impact in terms of costs related to the 5% charge from the sales and service tax, it is hoping for an exemption. 'There is a request in relation for an exemption for this. We are hoping to hear about the exemption and chances are, it will come in.'
New Straits Times
07-08-2025
- Business
- New Straits Times
SD Guthrie responds to Indonesian forest permit concerns
KUALA LUMPUR: SD Guthrie Bhd says less than three per cent of its 180,000 hectares of planted oil palm area in Indonesia is currently under review by the Indonesian government. Addressing concerns over reports suggesting that some of its Indonesian subsidiaries may be operating in forest-designated areas without permits, group managing director Datuk Mohamad Helmy Othman Basha said the matter is not unique to SD Guthrie. Similar overlaps have affected both Malaysian and Indonesian plantation companies operating in the country, he added. CIMB Securities recently highlighted growing regulatory risks for Malaysian plantation companies operating in Indonesia. This followed the Indonesian government's move to seize land lacking proper forestry permits or in violation of land-use laws. SD Guthrie's Indonesian subsidiaries were listed in an official decree, with 3,045 hectares under scrutiny, 1,874 hectares currently under the legalisation process and 1,171 hectares reportedly rejected. "For context, our total planted area in Indonesia is about 180,000 hectares. Less than three per cent of this has been flagged by the authorities as overlapping with forest zones," Helmy said at a press briefing here today. "However, we have our own data that disputes this, and discussions with the Indonesian government are ongoing," he added. Helmy said SD Guthrie continues to manage operations in the affected areas and is in active discussions with the Indonesian government to resolve the land classification concerns Group chief operating officer Mohd Haris Mohd Arsyad said the issue is not about illegal clearing or expansion, but rather differing interpretations of land use boundaries. "There's the Perhutanan (forestry) map, and then there's the map from the ministry that gives us our licenses. Much of this happened before we acquired the land," he said. The land in question was acquired from the Indonesian government in 2001 during a post-financial crisis asset restructuring. Helmy likened the acquisition to Malaysia's Danaharta model, saying that it was conducted with representations and warranties from the government. Chief financial officer Renaka Ramachandran clarified that SD Guthrie should not be associated with deforestation, as the plantations were already established prior to the acquisition. "We never planted the land ourselves. We bought ready-made plantations, and the agreement came with assurances from the government. Accusations of deforestation should not arise," she said. The executives reiterated that SD Guthrie holds valid land titles and has complied with relevant processes. They acknowledged that resolving the matter will require time and continued engagement with authorities. "We're confident this will be resolved, but it's a complex issue that requires ongoing dialogue with the government," said Haris.
New Straits Times
07-08-2025
- Business
- New Straits Times
SD Guthrie posts 71pct higher net profit to RM1.07bil in first six months
KUALA LUMPUR: SD Guthrie Bhd posted a 71 per cent year-on-year (YoY) increase in net profit to RM1.07 billion for the first half of 2025, up from RM626 million in the same period last year. Group managing director Datuk Mohamad Helmy Othman Basha said the strong performance was largely driven by its upstream operations, which saw profits more than double, supported by higher crude palm oil (CPO) and palm kernel (PK) prices. CPO prices rose three per cent YoY to RM4,146 per tonne, while PK prices surged 50 per cent to RM3,247 per tonne, he said at a press conference on SD Guthrie's latest interim results here today. The group's fresh fruit bunch (FFB) production increased by four per cent across all segments. Helmy said CPO prices are expected to remain around RM4,000 per tonne for the rest of the year. For the second quarter ended June 30 2025 (Q2FY2025), chief financial officer Renaka Ramachandran reported a 22 per cent increase in net profit to RM505 million, compared to RM415 million in the same quarter last year. The group's revenue for the quarter rose 4.11 per cent to RM5.17 billion from RM4.97 billion previously. Its upstream operations continued to benefit from the favourable commodity prices and improved output, which underpinned the strong quarterly and half-yearly performance. For the downstream segment, SD Guthrie International (SDGI) saw a 44 per cent drop in profit before interest and tax (PBIT) to RM126 million in Q2FY2025, from RM225 million a year earlier and the segment was impacted by weaker demand and tighter margins across Asia Pacific and Europe. However, SDGI's Oceania operations delivered encouraging results, with higher sales volumes and margins contributing to commendable operating profits. The group advanced its industrial development efforts, including a strategic partnership with Permodalan Negeri Selangor Bhd to co-develop a food security and edu-tech hub on Carey Island. SD Guthrie expects palm oil prices to remain volatile as the industry enters its peak output cycle amid ongoing global uncertainties. Nevertheless, the group said improved weather conditions, better operating performance and continued progress in new business pillars are expected to support its growth trajectory. Helmy said by 2030, its two emerging business pillars namely industrial development and renewable energy (currently focused primarily on solar) are expected to contribute between RM700 million and RM800 million to its bottom line. This will represent close to 30 per cent of the group's overall earnings.
Business Recorder
07-08-2025
- Business
- Business Recorder
Palm prices expected to hover around 4,000 ringgit this year, says SD Guthrie
KUALA LUMPUR: Malaysia's palm oil plantation company SD Guthrie Berhad said on Thursday that crude palm oil prices were expected to remain steady at around 4,000 ringgit ($946.52) for the rest of this year. Palm prices have held steady after Indonesia fully implemented its B40 biodiesel mandate, group managing director Mohamad Helmy Othman Basha said during a press conference.
