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Borneo Post
4 days ago
- Business
- Borneo Post
Sarawak Oil Palms to grow FFB production to 1.31 mln tonnes in FY25
Sarawak Oil Palms guided that its all-in production cost for FY25 is expected to rise slightly to RM2,500 per tonne. KUCHING (July 10): Sarawak Oil Palms Bhd (Sarawak Oil Palms) aims to grow its fresh fruit bunch (FFB) production by 5 per cent year-on-year in financial year 2025 (FY25) to 1.31 million tonnes, up from 1.25 million tonnes in FY24 on the back of improving yields supported by the group's favourable weighted average tree age of 13 years. During a recent non-deal roadshow hosted by analysts from Maybank Investment Bank (Maybank IB), Sarawak Oil Palms guided that its all-in production cost for FY25 is expected to rise slightly to RM2,500 per tonne. Sarawak Oil Palms is also targeting annual replanting of 4,000 to 5,000 hectares to support long-term yields. Maybank IB noted that while upstream remains the group's core contributor, investors welcomed the rising profit contribution from its downstream operations in FY24. It said this was partly due to the absence of overcapacity in Sarawak's refining sector. 'We believe Sarawak Oil Palms can sustain at least a 15 sen dividend per share payout in FY25, supported by strong free cash flow generation and a growing net cash position of RM1.1 billion as of March 31, 2025,' it said in a note yesterday. However, management guided that FY25 margins are expected to come under pressure due to renewed competition from Indonesia following improved crude palm oil (CPO) supply. In FY24, Sarawak Oil Palms had a strong margin, with a refining capacity of 2,300 tonnes per day and a utilisation rate above 80 per cent. Furthermore, the group's 600 tonnes per day biodiesel plant continues to generate stable margins as it supports Sarawak's biodiesel mandate. The research house added that Sarawak Oil Palms' property development arm has made modest earnings contributions since 2017, averaging below RM3 million in annual EBIT (earnings before interest and tax). The arm monetises pockets of estate land located about 45 kilometres from Miri. The group also guided that it is planning new property launches in Kuching involving about 30 hectares but details have not been disclosed. Meanwhile, researchers with RHB Investment Bank Bhd (RHB Research) expects CPO prices to remain volatile due to geopolitical tensions, US trade tariffs, ongoing wars, and a drop in crude oil prices. 'Fundamentally however, global supply and demand will likely be more balanced in 2026 as supply improves. Demand should pick up given the more attractive relative prices,' it said in a separate note. Looking ahead, RHB Research expects muted soybean prices due to ongoing strong supply while soybean oil prices will stay elevated as the US increases its biofuel blending. It said CPO is expected to continue trading at a discount to soybean oil, currently at US$217 per tonne, with demand from price-sensitive countries like India, Pakistan and Bangladesh expected to rebound. RHB Research revised its average CPO price forecast for 2025 down to RM4,100 per tonne, from RM4,300. Its 2026 and 2027 forecasts have also been lowered to RM4,000 from previous RM4,100. analysis corporate news economy Sarawak Palm Oil Bhd
The Star
6 days ago
- Business
- The Star
Sapura Energy to convene EGM for shareholders' approval of regularisation plan
KUALA LUMPUR: Sapura Energy Bhd (SEB) will convene an extraordinary general meeting (EGM) on July 30, 2025, for shareholders to vote on its proposed regularisation plan aimed at restoring the company's financial health and exiting Practice Note 17 (PN17) status. In a filing with Bursa Malaysia today, SEB outlined four key components of the plan, which include capital reconstruction, debt restructuring, fundraising, and a proposed exemption for Malaysia Development Holding Sdn Bhd (MDH) and its partners from making a mandatory general offer. SEB said the capital reconstruction exercise involves a 99.99 per cent reduction and a 20-to-1 share consolidation, but neither exercise will affect the percentage shareholding of existing shareholders. The company also plans to reduce its borrowings from RM10.8 billion to RM5.6 billion under the debt restructuring proposal, which is expected to cut annual interest costs by 60 per cent or more than RM500 million. Meanwhile, MDH will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS) to help settle outstanding vendor payments in the local oil and gas ecosystem. The final component of the plan seeks to exempt MDH and its persons acting in concert from making a mandatory offer should they fully convert their RCLS. SEB said a dedicated shareholders' help desk will be set up from July 15 to assist with queries regarding the proposed regularisation plan. With shareholders' approval, the company aims to strengthen its equity position, improve liquidity and contract execution, restore market credibility, and eventually apply to exit its PN17 status upon recording two consecutive quarters of profit post-restructuring. Group chief executive officer Muhammad Zamri Jusoh described the proposals as a decisive step in shaping the company's future and determining whether it can transform into a resilient, profitable enterprise. "By addressing legacy liabilities, enhancing our equity base and securing strategic support, we are rebuilding the foundation for future profitability and shareholder returns. "We recommend that all shareholders vote in favour of these proposals and support SEB's recovery and value creation journey,' he added. - Bernama
Borneo Post
7 days ago
- General
- Borneo Post
Hundreds attend inauguration of new Sri Maha Mariamman Temple in Sibu (Video)
Manogaran (third left), Sangapoosan (fifth left), and others in a group photo. — Photo by Peter Boon SIBU (July 7): Hundreds of Hindu devotees converged on the new Sri Maha Mariamman Temple at Jalan Orchid here today for its inauguration. The drizzle did not dampen their spirits throughout the ceremony. Among those present were temple president Manogaran Krishnasamy, Sibu Hospital director Dr Nanthakumar Thirunavukkarasu, and Malaysia Hindu Sangam president Sangapoosan T Ganesan. Photo shows the short procession. — Photo by Peter Boon Manogaran told The Borneo Post the initial plan was to hold the opening ceremony yesterday. 'However, that date wasn't quite 'ideal' for us. Therefore, we chose July 7 instead, as it's considered an auspicious day according to the Indian calendar,' he explained. There was a short procession on the temple's compound before the devotees proceeded into the house of worship itself and took part in prayers. The new temple was elaborately decorated by artisans from India. — Photo by Peter Boon Construction on the temple had been hit by a four-year delay due to the Covid-19 pandemic. During an interview with The Borneo Post last month, Manogaran said the original temple was built in 1920. 'It was just a small hut back then. This present building was established in 1971.' Prayers are held on top of the temple. — Photo by Peter Boon Manogaran also pointed out the construction cost nearly amounted to RM2 million, up from the initial RM1.1 million due to rising building material costs and also wages. 'The current double-storey building of the temple would be repurposed. 'We need to use the top floor as a hall, while the ground floor will be for the priest's accommodation and other related purposes,' he said, adding the building has significant historical and cultural value. Devotees join the prayer session inside the new temple building. — Photo by Borhaniza Ali Basah Jalan Orchid lead Manogaran Krishnasamy Sri Maha Mariamman Temple
New Straits Times
04-07-2025
- New Straits Times
Remand extended for influencer, 5 others linked to Kelantan drug bust
PASIR MAS: Police today obtained a seven-day remand extension for a 34-year-old Kelantan influencer and five others to assist in investigations into the seizure of 35.4kg of drugs worth more than RM5 million. The remand order, which ends on July 11, was issued by the Pasir Mas Magistrate's Court. Kelantan police chief Datuk Mohd Yusof Mamat said the order also applied to the woman's 35-year-old husband and four other suspects. The extended remand takes effect tomorrow. He said the initial remand for all six suspects began on June 28 and ended today. The suspects were arrested in a special operation jointly carried out by Bukit Aman's Narcotics Crime Investigation Department (NCID) and the Kelantan police contingent. Yesterday, police announced they had crippled a major drug syndicate involved in distributing methamphetamine pills, with the seizure of 35.4kg of the drug worth RM5.04 million during six raids in Pasir Mas and Tumpat. Federal Narcotics Crime Investigation Department acting director Deputy Commissioner Mat Zani @ Mohd Salahuddin Che said five men and a woman were detained in the operation, which was the result of a year-long investigation. He said the proceeds from drug sales were believed to be used to finance several businesses, including a seafood restaurant in Tanah Merah, a beauty salon and an online business. Police believe the syndicate used cattle farms as storage facilities for the pills, and the amount seized could have supplied an estimated 177,465 users. Police also seized jewellery, branded handbags and luxury vehicles with a total value exceeding RM1.1 million. Mat Zain added that the syndicate was believed to have been active since 2022.
The Sun
03-07-2025
- The Sun
Police uncover RM5m drugs hidden in cow dung in Kelantan raids
PASIR MAS: Police uncovered a major drug trafficking operation after discovering over 35.4 kilograms of 'pil kuda' concealed in a pile of cow dung during raids in Pasir Mas and Tumpat. The drugs, valued at RM5.04 million, were seized alongside luxury items worth RM1.1 million. Acting Director of Bukit Aman's Narcotics Crime Investigation Department (JSJN), Datuk Mat Zani @ Mohd Salahuddin Che Ali, confirmed the arrests of six suspects, including five men and one woman aged 25 to 39. The syndicate, active since 2022, allegedly targeted school students and teenagers in Kelantan, Klang Valley, and Johor Bahru. The breakthrough came after a year-long intelligence operation. Police first intercepted a Perodua Axia on Jalan Gajah Mati, Banggol Chica, finding 115 grams of 'pil kuda'. A subsequent search at the suspect's home uncovered another 112 grams. Behind the house, officers discovered 20 kg of the drug hidden in a cattle shed beneath cow dung. Simultaneous raids led to the arrest of another suspect with 15.4 kg of 'pil kuda' in his Toyota Hilux. Further operations in Pasir Mas and Tumpat netted three more individuals, including the wife of the primary suspect. Authorities believe the syndicate laundered drug profits through businesses like a seafood restaurant, salon, and online ventures. All suspects tested negative for drugs in initial screenings, though two had prior drug-related records. The case is being investigated under Section 39B of the Dangerous Drugs Act 1952, with suspects remanded for seven days. Mat Zani stated that the syndicate used the cattle shed as a storage hub before distributing the drugs. Police remain vigilant in curbing drug abuse, particularly in Kelantan, a high-risk border state. - Bernama
