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TDM plans oil palm planting project in Kalimantan

Posted on: May 30, 2009

Bernama – Thursday, May 28

KUALA TERENGGANU, May 28 (Bernama) — TDM Bhd plans to roll out the first phase of its planting oil palm project involving 40,000 hectares of land in West Kalimantan, Indonesia, by September this year.

The first phase of planting will involve 10,000 hectares, said Datuk Roslan Awang Chik, chairman of the Terengganu state-owned holding company.

“We are going to do it slowly and steadily,” Roslan said, adding that the group has invested RM18.2 million in the purchase of the land and the first phase of planting.

He said the company planned to plant another 2,000 hectares next year.

He was speaking to reporters after the company’s annual general meeting (AGM) here today.

TDM presently manages 12 oil palm estates totalling 35,000 hectares in Terengganu and is on an expansion drive in West Kalimantan.

The Indonesian operation is expected to contribute positively to the company’s earnings beginning 2012.

TDM, whose core businesses are in the plantation, healthcare and food industries, posted a pre-tax profit of RM6.5 million for its first quarter ended March 31, 2009, down from RM30 million in the same period last year.

“The decline in profit was attributed to crude palm oil prices being lower by 37 percent compared to the corresponding period in 2008,” Roslan said.

The plantation business contributed 95 percent to the company’s profit, he said.

TDM recorded a revenue of RM67.717 million for the first quarter, down 23 percent from RM88.279 million in the same period last year.

For the period, the plantation division posted an increase in fresh fruit bunches (FFB) by 0.4 percent while the healthcare division saw total patient number up by 11 percent.

“We might be able to achieve the target of RM40 million to RM45 million in profit this year, looking at the trend of rising crude palm oil prices,” Roslan said.

On TDM’s loss-making poultry business, he said the company had received interest from four potential buyers.

“The poultry business is not in line with our portfolio. We have already directed the management to look into the offers from potential buyers,” he added.

At the AGM, TDM announced a higher dividend payout of 10.5 sen net per ordinary share compared with 5.5 sen per share for 2007. — BERNAMA



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