KUALA LUMPUR (Nov 5): SD Guthrie Bhd (KL:SDG) is working on deals to expand its newly carved-out midstream palm oil segment.
The group is eyeing to double the segment’s trade flow from its current four million metric tonnes to eight million metric tons (MT), according to its president and group chief executive officer Mohd Haris Mohd Arshad.
“There are some deals that we're working on right now, which we’re not at liberty to disclose. I think it's very safe to say between 1.5 and two million MT of additional trade flow is well within our sight at the moment,” Haris said.
“But watch that space (midstream), that is something that we are working on,” he added.
The midstream segment — which in essence coordinates logistics, trading and bulking to optimise product flows — has been separated from the group’s downstream segment to give it a distinct focus.
The group's midstream segment comprises sale of crude palm oil (CPO), refining of oils, production of biodiesel products, sale of derivatives and crushing of palm kernel into crude palm kernel oil and palm kernel expeller.
Downstream, meanwhile, now comprises production and sales of refined oils and fats, including specialty and end-user oils and fats, sale of CPO and sale of oleochemical products.
The midstream segment logged a lower profit before interest and tax (PBIT) of RM99 million for the three months ended Sept 30, 2026 (3QFY2026), compared with RM123 million a year ago.
The drop in earnings came on lower margins from Asia-Pacific bulk operations.
At press time, shares of SD Guthrie were up eight sen or 1.35% at RM6.01, valuing the group at RM41.56 billion.
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