Its group managing director, Mohamad Helmy Othman Basha, said it hopes to conclude discussions with the three parties on the purchase of the land measuring some 10,500ha soon.
“We want to exit in a responsible way and in the best manner possible from Liberia and whoever is buying, we expect them to be responsible as well,” Hemly told reporters after announcing Sime Darby Plantations’ second quarter results here today.
If the discussions with the three parties fail, he said, the company has a last option under the concession agreement to return the land to the Liberian government and hopes to get compensation.
Helmy said that when the group decided to invest in Liberia, there were not many investors and job opportunities to come by for the local residents.
“Sime Darby Plantation is the biggest investor in Liberia, owning 10,500ha of land and providing many facilities for the people working and living there,” he said.
“We want whoever is buying over to provide the same facilities in the estates for the people. They must be responsible when taking over,” he said.
He said the group informed the Liberian government and president of its intention to leave Liberia in May.
Sime Darby signed a 63-year concession agreement with the Liberian government in 2009 to develop 220,000ha in Grand Cape Mount, Bomi, Gbarpolu and Bong into oil palm and rubber plantations.
To date, 10,508ha have been planted in estates in Matambo, Grand Cape Mount, Zodua, Bomi and Lofa.
Meanwhile, the group announced net earnings of RM101 million for the second quarter ended June 30, a 64% drop against the corresponding period last year.
Net profit for the second quarter stood at RM27 million, as opposed to RM30 million previously.
Helmy said lower profit at its downstream oil palm operations also affected the group’s bottom line.
Looking ahead, he said the group expected the business environment for the palm oil industry to remain challenging for the rest of FY19 amid relatively flat CPO prices.
On the group’s forecast price for CPO, he said: ” We hope it will be around RM2,200 to RM2,300 till the end of this year.”