15
ANNUAL REPORT 2015
chairman’s statement (cont’d)
59,202
55,438
9,852
10,243
766,469
740,013
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
700,000
710,000
720,000
730,000
740,000
750,000
760,000
770,000
780,000
Planted Area - Mature (ha)
Planted Area - Immature (ha)
FFB Production (MT)
Oil Palm Planted Area/FFB Production
2014
2015
68,334
10,756
81,644
13,119
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Palm Oil (MT)
Palm Kernel (MT)
Mill Production
2014
2015
14%
46%
40%
Prime Mature
Young Mature
Immature
Palm Age Profile As At 30 June 2015
Revenue for the year was RM297 million, a 7% decrease
compared to previous year due to lower price and lower
production.
As at 30 June 2015, the group’s planted areas stood at
69,054 hectares (Ha) spreading over 10 plantations in
Sarawak. Despite a 7% increase (59,202 Ha) in matured
area, our FFB production for the year had dropped by 3% to
740,013 metric tones (MT) from the previous year’s 766,469
MT. Manpower continues to be an issue while unfavorable
weather also led to lower production generally experienced
by other planters in Sarawak.
The group’s palm oil mill produced approximately 82,000
MT of CPO and 13,000 MT of palm kernel (PK). There are
currently three mills in operation with total processing
capacity of 210 MT per hour, while another mill with designed
capacity of 60 MT is scheduled to be commissioned by
Year 2016. Upon full operation, the mills are expected to
contribute significantly to profitability.
Oil Palm Outlook and Strategy
As at 30 June 2015, the weighted average of our palm age is
still below 7 years. We expect our FFB yield (MT) per hectare
to continue to improve and consequently reducing our cost
of production. Labor shortage continues to be an issue
nationwide and we are no exception. In order to cope with
this challenging operating environment, we have increased
mechanization so we can optimize the deployment of labor.
We will continue to improve our Oil Extraction Rate (OER)
from CPO mill operation by imposing stringent control over
operation efficiency and FFB input quality. With further
fine tuning, we expect production volume and efficiency to
improve in next financial year.
We remain optimistic about the long term prospects for
the palm oil industry despite current weakness in CPO
price. We will endeavor to lower our cost of production by
enhancing our harvesting yield and productivity so that we
are poised to reap the profits in the event CPO prices start
to trend upwards.
