MONDAY. JULY 10, 2017
KOTA KINABALU: Sawit Kinabalu Sdn Bhd, the investment arm of Sabah government in the oil palm industry, is confident of maintaining its profit at about RM150million this year
Group managing director Datuk Othman Walat said for the first half of the year, the company posted RM64million pretax profit.
"Yields were good as of June, and is 15 per cent higher. If the price (of average crude palm oil) continues like this, we will perform better than the previous year," he said when met at the company's open house last Saturday.
Last year, Sawit Kinabalu registered profit of between RM150million and RM160 million despite the El Nino weather phenomenon reducing crop production by 15 per cent.
The average crude palm oil price is estimated at RM2,650 per tonne this year.
Othman said Sawit Kinabalu anticipated future challenges such as worker shortage as well as tough prices.
He said palm oil remained relevant compared with soy bean oil, its main competitor.
"The production cost of palm oil is cheaper than soybean oil. One hectare can produce five tonnes of palm oil, while
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