Tuesday, January 31, 2012

Hamed Sepawi and KH Wong-owned Ta Ann Holdings Bhd profits from 420,000 tonnes of palm fruit from Sarawak 2011

Ta Ann registers strong FFB growth of 47 per cent to be sustained into 2012

Posted on January 20, 2012, Friday
KUCHING: Ta Ann Holdings Bhd (Ta Ann) has registered fresh fruit bunch (FFB) growth of 47 per cent year-on-year (y-o-y) for the period between January to November 2011,  prompting predictions that the growth will be sustained into 2012.
“Ta Ann’s FFB production jumped by 47 per cent to 418,915 million tonnes, which was significantly higher than the industry’s average FFB growth of 11 per cent,” Kenanga Investment Bank Bhd (Kenanga Research) stated in its research report.
The research house believed that the FFB production soared in financial year 2011 as matured area had grown by 31 per cent y-o-y to 20,317 hectares. It predicted the trend to continue into financial year 2012 as the matured area would grow 26 per cent  y-o-y to 25,690 hectares.
This would lead the way for FFB production to surge 31 per cent  y-o-y to 596,000 million tonnes, the report said.
Kenanga Research foresaw a bountiful harvest ahead for Ta Ann as its average oil palm tree age profile of 4.5 to five years was the youngest for planters under the research house’s coverage. As the trees mature, it expected Ta Ann’s FFB production to grow at an enviable three year compound annual growth rate (CAGR) of 21 per cent.
“As oil palm trees’ FFB production usually peaks at between 10 to 12 years old, we can look ahead for at least five years of uninterrupted double digit FFB growth,” the research house enthused.
On the assumption of a disciplined planting of 3,000 hectares annually for financial years 2012 and 2013, the company’s FFB production could be maintained at a five year CAGR of 15 per cent.
The research house reiterated its view that Ta Ann should be categorised as a plantation company, noting that 72 per cent of its nine months 2011 profit before tax was derived from its plantation devision.
As the company’s FFB production surged, Kenange Research expected the plantation division preta profit contribution to reach 83 per cent and 93 per cent in financial year 2012 and 2013 estimates respectively.
Kenanga Research went on to upgrade financial year 2012 estimated core earnings by three per cent to RM195 million as it pegged a taret price of RM6.25 per share for Ta Ann.

Wednesday, January 25, 2012

Shin Yang-controlled SOP profits from 820,000 tonnes of FFB from Sarawak land in 2011

SOP registers 22 per cent FFB growth last year

Posted on January 6, 2012, Friday
KUCHING: Sarawak Oil Palms Bhd’s (SOP) registered a 22 per cent growth in fresh fruit bunch (FFB) for the year 2011 when compared with the yield for 2010.
OSK Research Sdn Bhd (OSK Research) stated that 2011 FFB production was above 820,000 tonnes while crude palm oil (CPO) production was above 310,000 tonnes, representing a 30 per cent boost from 2010.
“Weather has been good so far in central and northern Sarawak where SOP’s estates are located. FFB production growth this year should be in the high-teens,” the research house opined.
To cater for its FFB production growth, the company was building two CPO mills with a total capital expenditure estimated at RM115 million.
A 60 tonne per hour CPO mill would be completed and begin operations in mid-2012 while another 90 tonne per hour mill would come on stream in 2013.
Meanwhile, the company’s 1,500 tonne per day refinery in Bintulu was on track to commence operations in April this year.
The refinery should be fully utilised by the company’s own CPO production within two to three years, of which then the company would look to further expand its downstream capacity.
As of now, SOP’s own CPO production would cater for about 70 per cent of the refinery’s capacity, OSK Research stated. Based on 12 times financial year 2012 price earnings ratio, the research house pegged SOP’s fair value at RM6.51 per share.

Wednesday, January 18, 2012

Shin Yang-owned SOP reaps outstanding 9 months profit in Sarawak


Sarawak Oil Palms posts RM 200 million profit for 9 months

 November 30, 2011, Wednesday

UPSIDE SURPRISE: Photo shows workers on one of Sarawak Oil Palms’ estates. Sarawak Oil Palms saw its revenue surge 65.4 per cent year-on-year on the back of stronger palm prices and production, leading to earnings growth of close to 100 per cent.
KUCHING: Sarawak Oil Palms Bhd (Sarawak Oil Palms) nine months financial year 2011 earnings of RM199.7 million came in ahead of expectations, placing the company on track to form its best production year ever.
OSK Research Sdn Bhd (OSK Research) stated in its research report, “The company’s earnings blew away estimates, accounting for 90.7 per cent and 88.2 per cent of our and consensus full-year forecasts as we had originally expected a weaker second half.”
Sarawak Oil Palms saw its revenue surge 65.4 per cent year-on-year on the back of stronger palm prices and production, leading to earnings growth of close to 100 per cent, according to the research house. It went on to explain that the company was on course to record its best production year ever, with its nine months fresh fruit bunch production jumping 21.8 per cent year-on-year to meet 74.4 per cent of OSK Research’s 811,741-tonne full-year production forecast.
While the company’s crude palm oil (CPO) sales were transacted at prices marginally below the national average in the first half of the year, its realised CPO prices for thie third quarter were actually higher than the Malaysian average.
“This suggests some degree of forward sale as Sarawak transacted prices were below the national average during the quarter,” added the report.
Going forward, the research house raised its financial year 2011 earnings forecast by 19.6 per cent to RM263.3 million as it factored in better than estimated realised palm kernel prices and higher net interest income.
Financial year 2012 income had also been revised upwards b 24.6 per cent as OSK Research upgraded its 2012 average CPO price assumption to RM3,000 per tonne from RM2,700 tonne previously.
With regards to the company’s new Bintulu refinery, the research house factored in zero earnings, predicting multiple operation hiccups and under-utilisation in the initial age of commencing operation. OSK Research thus pegged a fair value of RM6.51 per share for Sarawak Oil Palms, an increase from the previous RM5.67.

Thursday, January 12, 2012

Anthony Bujang is Petra Energy's new CEO

KUALA LUMPUR: Integrated oil and gas brown field services provider Petra Energy Bhd has appointed Datuk Anthony Fridauz Bujang its new chief executive officer.

In a statement today, Petra Energy said Anthony who is formerly Chief Executive Officer of the New Straits Times Press (M) Bhd (NSTP), was well experienced in banking, communications and the oil & gas industry.

The company also announced the appointment of Florentius Henry Toyad as Director of Operations, Mohamad Zaidee Abang Hipni as Chief Financial Officer, Saperi Rambli as Senior General Manager (Corporate Communications, Branding and Services), Mohamed Azahari Jantan as Head of Contract and Commercial, Mohamad
Subky Bustari as General Manager (Group Operations Planning), Abdullah Hashim as Senior Manager (Internal Audit) and Lee Hung Sang as Technical Operations Manager.- BERNAMA