PETALING JAYA: TSH Resources Bhd is targeting for an improved liquidity position in the near to medium term.

       The oil palm planter’s net gearing had seen a steady drop in the past few years with the level being reduced by half from 0.90 times in financial year 2018 (FY18) ended Dec 31 to 0.45 times in FY21.

       In its 2021 annual report, the company said it recognised that it was in a net current liability position.

       “In this regard, the company will continue to adopt a prudent stance on cash management to ensure that it is able to meet all debt obligations as and when they fall due,” TSH said.

       As at Dec 31, 2021, TSH had some RM376.8mil in unutilised credit facilities.

       The company said it would like to further improve its liquidity position through cash flow generated from operations and proceeds arising from the disposal of assets.

       The disposal of assets include the sale of oil palm estates and a mill in Sabah called Ladang Gomantong, Ladang Ong Yah Ho and Lahad Datu Palm Oil Mill for RM248mil, and the disposal of 13,214ha of plantation land in Kalimantan for 142 billion rupiah (RM41.46mil).

       Despite the asset sales, the company still remains an oil palm planter.

       Moving forward, TSH said that crude palm oil prices may see a moderation in the second half of the year. This is based on production picking up on seasonality factors.