KUCHING: Rimbunan Sawit Bhd (RSB) has completed its capital reduction exercise via the cancellation of the company’s paid-up share capital which is substantially unrepresented by available assets of about RM223.1 million.
The corresponding credit of RM223.1 million arising from the cancellation will be used to set off against the company’s accumulated losses which stood at RM223.1 million as at March 31, 2023.
RSB said the company had not received any application under Section 118(2) of the Companies Act, 2016 (Act) for the cancellation of the special resolution passed at its extraordinary general meeting (EGM) on Sept 19, 2023 for the capital reduction.
“Pursuant thereto, RSB had lodged the relevant documents as required under Section 119(1) of the Act with the Registrar of Companies, and subsequently on Nov 6, 2023, received a notice dated Nov 3 2023 issued by the Registrar of Companies confirming the reduction of the share capital.
“Pursuant to Section 119(4) of the Act, the notice shall be conclusive evidence that all the requirements of the Act with respect to the reduction of share capital have been complied with. Accordingly, the capital reduction took effect on Nov 3, 2023.
“Following the completion of the capital reduction, the issued share capital of the company is RM391,510,496 comprising 2,041,722,343 RSB shares,” added the company in a filing with Bursa Malaysia.
RSB said the rationale for the capital reduction was to accurately reflect the group’s financial position through eliminating the company’s accumulative losses, and to enhance its ability to declare and pay dividends out of its retained earnings in future, as and when appropriate, when the group returns to profitability.
In second quarter to June 30, 2023 (2Q2023), RSB incurred group net loss of RM55,000 on revenue of about RM122 million.
Meanwhile, RSB has reported a 25.43 per cent jump in the production of fresh fruit bunches (FFB) to 74,455 tonnes in 3Q2023 as compared to 59,359 tonnes in 3Q2022. However, the production of crude palm oil (CPO) has fallen 3.11 per cent to 30,098 tonnes from 31,063 tonnes while the output of palm kernel (PK) dipped 0.82 per cent to 6,662 tonnes from 6,718 tonnes during the same period.
There was a significant improvement in the production volume of FFB, CPO and PK in the current quarter as compared to the immediate preceding quarter (2Q2023). The output of FFB climbed 18.05 per cent to 74,455 tonnes from 58,064 tonnes,
CPO surged 14.23 per cent to 30,098 tonnes from 26,604 tonnes while PK volume grew 14.49 per cent to 6,662 tonnes from 6,096 tonnes.
In the first nine months of 2023 (9M2023), RSB recorded a 19.2 per cent increase in FFB production volume to 178,300 tonnes (9M2022: 149,580 tonnes) and 2.85 per cent increase in PK output to 17,542 tonnes (17,056 tonnes). But the production of CPO slipped 1.91 per cent to 77,470 tonnes (78,978 tonnes).
RSB group owns 16 oil palm estates spanning across Kuching, Sibu and Miri regions with total land bank of 69,909 hectares, out of which 42,478 hectares or 61 per cent have been planted. The Miri region has the biggest planted area of 26,446 hectares, followed by Sibu region (9,396 hectares) and Kuching region (6,636 hectares)
The bulk of the palms are in the prime mature (8-19 years) category (20,849 hectares) old mature (more than 20 years) (17,794 hectares), young mature (4-7 years) (1,259 hectares) and immature (1-3 years) (2,576 hectares).
The group also owns three palm oil mills (two in Miri region and one in Kuching region).
Meanwhile, Sarawak Plantation Bhd reported CPO production volume of 13,000 tonnes, FFB volume of 32,975 tonnes and PK output of 3,044 tonnes for October 2023.
The group owns 13 oil palm estates with total plantable size of 35,656 hectares. It also has another estate with planted area of 405 hectares under a joint venture with a state agency.
