Sime Darby Berhad : In Line, But Cost Overrun Provision After All - 01/03/2010

In line with our forecasts, but below consensus. Sime Darby’s 1HFY06/10 core net profit came in within our expectations but below consensus, at 50.6% of our FY10 forecasts and 45.5% of consensus’ forecasts. In 2QFY10, Sime recorded a net EI loss of RM147m, comprising:
(1) forex loss of RM2.2m;
(2) RM210m provision for cost overruns for Qatar Maersk Oil project; offset by
(3) RM37.5m gain on sale of property subsidiary; and
(4) RM27.7m gain on sale of motor subsidiary, bringing net EI loss for 1HFY10 to RM126.1m.

Sime Darby Berhad : In Line, But Cost Overrun Provision After All - 01/03/2010