El Nino to hit SD Guthrie's Indonesian output

The prolonged dry weather brought on by El Nino is anticipated to impact SD Guthrie Bhd's Indonesian production over the next two years, according to the company's CEO for upstream Indonesia, Adrianudin Raj Azman. The Indonesian production in Kalimantan is reportedly more affected by the dry weather compared to the yields in Sumatra.

Azman indicated a potential 10% reduction for next year, which could increase further in 2028 based on historical trends. However, he also noted that the company's palm age is now better compared to previous years, with a relatively large area of young, growing palms. The dry weather is expected to return between February and March next year, but if rainfall does not improve as expected, the impact could be more severe.

In the third quarter ended September 30, 2026, SD Guthrie's net profit decreased by 17.3% to RM773 million from the previous year's RM935 million. Lower earnings from industrial development, midstream, and downstream segments contributed to this decline. Revenue for the quarter slipped 0.3% to RM5.39 billion from RM5.41 billion in the same period last year.

For the nine-month period, the group reported higher earnings of RM2.32 billion from RM2 billion the previous year, while revenue decreased to RM15.03 billion from RM15.4 billion. SD Guthrie's shares closed 1.18% higher at RM6, valuing the company at RM41.49 billion.