Business

Saturday November 21, 2009

Wilmar, sugar ops lift PPB Group Q3 earnings


PETALING JAYA: PPB Group Bhd’s net profit for the third quarter ended Sept 30 surged 187.5% to RM595.1mil from a year ago due mainly to a higher profit contribution of RM943mil from its associate company Wilmar International Ltd as well as improved results of its sugar refining operations.

Revenue, however, was marginally down to RM929mil from RM979mil before on lower revenue registered by the company’s flour and feed milling, chemicals trading and manufacturing and property development divisions.

Additionally, the group’s shipping operations were also affected by low hire rates that translated into lower profits.

Earnings per share for the quarter under review stood at 50.20 sen against 17.46 sen a year ago.

Current year prospects amid continued uncertainties due to the global economic environment, fluctuating raw material prices and ocean freight rates would affect the group’s profitability for the remainder of 2009, PPB told the stock exchange. “Nonetheless, the group’s full year performance is still expected to be better than last year before taking account the proposed disposals announced on Oct 30,” it said.

PPB has proposed to dispose of its 100% equity interest in Malayan Sugar Manufacturing Co Bhd to Felda Global Ventures Holdings Sdn Bhd (FGVH) for RM1.22bil.

It also proposed to sell 50% of its equity interest in Kilang Gula Felda Perlis Sdn Bhd and a plot of land in Chuping, Perlis, to FGVH for RM26.3mil and RM45mil respectively.

Grenfell Holdings Sdn Bhd, a 49%-associate of PPB, has also entered into a conditional sale and purchase agreement with FGVH for the proposed disposal by Grenfell of 59.3 million shares of RM1 each in Tradewinds (M) Bhd (TWM), or 20% of the issued and paid-up share capital of TWM, for RM207.53mil cash or RM3.50 per TWM share.


PPB : [Stock Watch] [News]

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