FORGING AHEAD - Tradewinds Plantation Berhad

Notwithstanding the lower production,
the palm oil industry benefited from
higher prices in 2010 supported by
sentiments related to tight supply of
vegetable oils in the world market, low
domestic palm oil stocks and firmer
crude oil prices. The average CPO
price in 2010 rose by 20.8% to
R M 2 , 7 0 1 . 0 0 p e r t o n n e f r o m
RM2,236.50 achieved in the previous
year. The highest monthly average CPO
price was attained in December at
RM3,620.00, while the lowest was
recorded in July at RM2,453.00. In line
with the increase in CPO prices, the
average price of palm kernel during the
year under review rose sharply by
62.2% to RM1,735.50 per tonne.
Exports of palm oil increased by 4.9%
to 16.66 million tonnes from 15.88
million tonnes recorded in 2009. China
remained the country’s biggest export
market, with an off-take of 20.9% of
total palm oil exports. Other main
markets included Pakistan (12.8%), the
European Union (12.4%), India (7.0%),
United States of America (6.2%), Egypt
(5.6%) and Japan (3.3%).
FINANCIAL PERFORMANCE
For the year ended 31 December 2010,
revenue was posted at RM909.1 million,
which is the highest recorded by the
Group. This represents a 34.2%
increase from RM677.4 million recorded
in the previous year. The Group also
achieved a 260.7% increase in profit
before tax to RM282.4 million, against
the RM78.3 million posted in 2009. The
improved bottom-line results were mainly
attributable to higher prices of palm
products during the year. On the strength
of these financial numbers, earnings per
share has improved significantly to
29.63 sen.
The Group’s improved financial numbers
were reflected by its strong showing on
Bursa Malaysia, and this has caught the
attention of many analysts and research
houses. Some analysts recognise the
Company as a potential growth stock,
singling out the Group’s favourable
maturity profile of its plantation crop,
new planting programme and earnings
potential. Our counter has been on the
uptrend throughout 2010, closing the
year at RM3.39.
DIVIDENDS
PERFORMANCE REVIEW
A first interim dividend of 5 sen per
ordinary share less income tax of
2 5 % (2009:Nil) amounting to
RM19,843,254 (2009:Nil) for the
financial year ended 31 December
2010 was paid to the shareholders on
30 December 2010.
On the back of the commendable
results, the Board of Directors is pleased
to propose a final dividend of 5 sen per
share less income tax of 25% (2009:6
sen per share less income tax of 25%)
amounting to RM19,843,254 (2009:
RM23,811,904) for the financial year
ended 31 December 2010. Subject to
the approval of shareholders at the
forthcoming Annual General Meeting,
this will be payable on 28 July 2011.
Pending approval of shareholders, the
total dividend pay-out for the FY 2010
would amount to RM39,686,508
compared to RM23,811,904 in the
previous financial year.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
39