KUALA LUMPUR, Feb. 22 (Xinhua) -- Malaysian palm oil producer Sime Darby Plantation on Thursday reported lower earnings in 2023 due to lower palm oil prices.
The firm said in a bourse filing that its net profit for 2023 fell 25.24 percent year on year to 1.86 billion ringgit (389.4 million U.S. dollars). Its revenue for the year also declined by 12.37 percent year on year to 18.43 billion ringgit.
As for the fourth quarter, the firm's net earnings tumbled 64.41 percent year on year to 200 million ringgit, while its revenue slipped 6.88 percent to 5.28 billion ringgit.
Despite higher overall fresh fruit bunch (FFB) production, the firm has reported lower average realized crude palm oil (CPO) and palm kernel prices for the period.
According to the firm, CPO demand is expected to remain steady in the longer term though seasonally high stockpiles in key destination countries may impact short-term demand.
The group, however, is also cognisant of continued geopolitical risks and predictions of moderating global economic growth, which may impact demand.
"Unpredictable weather conditions are likely to raise supply concerns for vegetable oils globally. This in turn is anticipated to provide favorable support for CPO prices in 2024," it said. (1 Malaysian ringgit equals 0.21 U.S. dollar) ■