Rimbunan Sawit takes RM10 million revenue hit from disruption

KUCHING (September 24): Rimbunan Sawit Bhd (RSB) estimates that the three-month blockade of the main access route to its Ulu Teru estate cut its revenue by about RM10 million.

The company in a bourse filing on Wednesday said it had completed its assessment of the operational and financial impact of the disruption at the estate which is owned by its subsidiary PJP Pelita Ulu Teru Plantation Sdn Bhd.

“Based on the assessment, the disruption has resulted in an estimated reduction in revenue of approximately RM10,000,000,” it said.

The group said the blockade was lifted on Sept 15, and estate operations fully resumed on Sept 21.

Access to the estate had been disrupted since June 18 because of the blockage of the main access route.

In its earlier filing on July 6, RSB said the blockage had affected harvesting, transportation of fresh fruit bunches and certain estate operations.

At the time, the group said it had been engaging with the relevant authorities and other stakeholders to resolve the matter as quickly as possible, and was taking operational measures to minimise the impact on its plantation activities.

It also said then that the duration of the disruption remained uncertain.

“The Board will continue to monitor the situation and management will take the necessary measures to safeguard the Company’s operations and interests,” RSB said in its latest filing.