Better-than-expected quarterly profits were forwarded by Malaysian conglomerate Sime Darby on Thursday. The company also expressed that the profits shall be three- fold more than the capital expenditure for enhancing plantation operations in fiscal 2010.

Sime Darby emerged after a merger between three palm oil companies. The company specified that currently, it does not plan to "spin off" its plantation business for another listing on the local bourse.

CEO Ahmad Zubir said, "We took the trouble to merge the companies for synergistic value, we are now in stage two, and stage two is to expand."

It has appeared that a 4.5 billion ringgit ($1.27 billion) fundraising is being mulled by the company in fiscal 2010 utilizing Islamic instruments.

While addressing a news conference when releasing the company's quarterly earnings, Zubir said that for FY2010, capital expenditure shall be 7 billion ringgit, compared with 2 billion in 2009.

April-June net profit of 984 million ringgit was reported by the world's biggest oil palm planter by land bank, lower than 1.02 billion ringgit net profit a year ago.

A drop to 2.28 billion ringgit was seen in full-year net profit from 3.5 billion a year ago. However, it was above the 1.98 billion ringgit consensus, which was predicted by Thomson Reuters I/B/E/S.

The company's full-year net profit jumped the company's target by 20 percent.