KUALA LUMPUR: SIME DARBY BHD [] expects to be in the black in the first quarter ended Sept 30, 2010 (1QFY11), said its acting president and group chief executive Datuk Mohd Bakke Salleh.
"Thank God it is in the positive territory," he said, when asked to comment on the conglomerate's earnings which are scheduled to be announced on Nov 25, as the group puts behind the massive losses due to additional provisions for the loss-making energy and utilities (E&U) division.
On the outlook of crude palm oil (CPO) price, it was expected to trade between RM3,000 and RM3,200 per tonne for the next six months, he said after the AGM on Tuesday, Nov 16.
The counter, trading at a forward price-to-earnings ratio (PER) of 72.8 times, closed two sen lower at RM8.80 on Nov'' 16 with a total of 8.6 million shares changing hands.
It hit a 52-week high of RM9.19 on Jan 7, 2010 and its 52-week low stood at RM7.47 on May 27, 2010.
To recap, Sime Darby posted a net loss of RM77.35 million for the fourth quarter ended June 30, 2010 (4QFY2010), a contrast from its net profit of RM984.04 million a year ago.
For the financial year ended June 30 (FY2010), it posted a net profit of RM854.8 million compared with RM2.34 billion in net profit for FY2009, according to announcement to the local bourse.
Sime Darby's E&U division reported an operating loss of RM1.75 billion for FY2010 after making additional provisions of RM777.3 million for 4QFY2010. Including the RM1.308 billion provisions up to 3QFY2010, the total provisions for foreseeable losses and impairments for the full year amounted to RM2.085 billion.
The additional provisions amounting RM777.3 million relate to the three oil & gas projects namely, Qatar Petroleum (QP), Maersk Oil Qatar (MOQ) and Marine, and include provisions and impairment of other assets.
However, Sime Darby did not release the details of the forensic audit report to shareholders at the AGM due to legal factors and considerations.
Bakke said the group was advised by its legal officers that it should not disclose the details of the forensic report as the investigations were still underway by the Malaysian Anti-Corruption Commission (MACC), BURSA MALAYSIA BHD [] and Securities Commission (SC).
'We have been advised by our legal counsels that it would not be the best interests to release the findings of the forensic audit report because we are in the midst of filling a civil suits against those with prima facie culpability,' he said.
Bakke added that Sime Darby would commence civil suits with regards to the cost overruns in its E&U division before year of this year.
"Thank God it is in the positive territory," he said, when asked to comment on the conglomerate's earnings which are scheduled to be announced on Nov 25, as the group puts behind the massive losses due to additional provisions for the loss-making energy and utilities (E&U) division.
On the outlook of crude palm oil (CPO) price, it was expected to trade between RM3,000 and RM3,200 per tonne for the next six months, he said after the AGM on Tuesday, Nov 16.
The counter, trading at a forward price-to-earnings ratio (PER) of 72.8 times, closed two sen lower at RM8.80 on Nov'' 16 with a total of 8.6 million shares changing hands.
It hit a 52-week high of RM9.19 on Jan 7, 2010 and its 52-week low stood at RM7.47 on May 27, 2010.
To recap, Sime Darby posted a net loss of RM77.35 million for the fourth quarter ended June 30, 2010 (4QFY2010), a contrast from its net profit of RM984.04 million a year ago.
For the financial year ended June 30 (FY2010), it posted a net profit of RM854.8 million compared with RM2.34 billion in net profit for FY2009, according to announcement to the local bourse.
Sime Darby's E&U division reported an operating loss of RM1.75 billion for FY2010 after making additional provisions of RM777.3 million for 4QFY2010. Including the RM1.308 billion provisions up to 3QFY2010, the total provisions for foreseeable losses and impairments for the full year amounted to RM2.085 billion.
The additional provisions amounting RM777.3 million relate to the three oil & gas projects namely, Qatar Petroleum (QP), Maersk Oil Qatar (MOQ) and Marine, and include provisions and impairment of other assets.
However, Sime Darby did not release the details of the forensic audit report to shareholders at the AGM due to legal factors and considerations.
Bakke said the group was advised by its legal officers that it should not disclose the details of the forensic report as the investigations were still underway by the Malaysian Anti-Corruption Commission (MACC), BURSA MALAYSIA BHD [] and Securities Commission (SC).
'We have been advised by our legal counsels that it would not be the best interests to release the findings of the forensic audit report because we are in the midst of filling a civil suits against those with prima facie culpability,' he said.
Bakke added that Sime Darby would commence civil suits with regards to the cost overruns in its E&U division before year of this year.
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