http://www.mysinchew.com
2008-08-27 23:45
KIM LOONG RESOURCES is optimistic that the current downtrend in crude palm oil (CPO) prices will not hurt its profit for FYE Jan 31, 2009. Executive Chairman -GOOI SEONG LIM said the Company had locked in 25% of total CPO production up to Dec 2008 at RM3,400 a tonne and was not under pressure at this juncture.
He said even if CPO price were to drop to below RM3,000 a tonne and sustain for six months, its overall average price would still be relatively higher than RM3,000 this financial year against RM2,500 last financial year.
With a relatively tight national palm oil stock and uncertain soybean production, coupled with poor weather in the US, the tight vegetable oil supply would push CPO price back to its high.
Asked if KIM LOONG would further lock in its production, GOOI was quoted in the STAR ONLINE on Jul31, 2008 saying that " .... we will not sell below RM3,000 per tonne and do not think it's necessary as the CPO price downtrend is unlikely to stay ....".
On its diversification into the palm nutraceuticals project, which involves the extraction of tocotrienol concentrates (a vitamin E concentrate), he said KIMLOONG was currently busy building the distribution network to market the product, adding that the current production capacity of tocotrienols at its Kota Tinggi plant in Johor was 3,000 tonnes per year.
They hope to find a niche market for tocotrienols in Japan, the U.S. and China. The Company also plans tosell in bulk to local pharmaceutical companies with strong networks.
NEW SOLVENT EXTRACTION PLANT FOR PALM KERNEL
Meanwhile, KIM LOONG is investing RM10m each in a new solvent extraction plant for palm kernel in Kota Tinggi and another for fibre oil in Keningau, Sabah,for its downstream business.
On Dividend payout, GOOI said KIM LOONG had paid out 23 sen per share for FY09 to date, higher than its total dividend of 18 sen per share for FY08.(By KLSETRACKER.com)
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