KUALA LUMPUR, Aug 26 (Reuters) - Malaysia’s Sime Darby, the world’s largest listed palm oil firm, reported on Tuesday a 60 percent jump in fourth quarter profit but warned that future earnings could be hit by volatile commodity prices.

The company, the result of a merger between three government-controlled plantation companies, earned 1.02 billion ringgit ($301 million) or 16.99 sen a share in the fourth quarter ended June 30, boosted by strong crude palm oil prices.

It also declared a dividend of 44 sen a share for the quarter.

That compared to a net profit of 636.4 million ringgit or 11.62 sen in the year-ago period.

Full-year net profit was 3.5 billion ringgit or 59.63 sen a share, versus the Reuters Estimate of 3.56 billion ringgit or 59 sen a share.

Sime Darby has been benefiting from high prices for crude palm oil which can be used in products ranging from soap to food and biofuel.

But a government decision to collect a windfall tax from planters beginning in July was expected to hurt earnings in the current year, as will a recent sharp fall in crude palm oil prices.

The company warned that slowing global economic growth could weigh on profits.

“The local and global markets where the group’s divisions are operating are currently experiencing slower economic growth fuelled by uncertainty over high crude petroleum prices and downward pressure on crude palm oil prices due to high stock levels,” Sime said in a statement.

“Barring any unforeseen circumstances, the result of the group for the current financial year is expected to be affected by the factors mentioned above.”

Sime Chief Executive Ahmad Zubir Murshid said the company’s profits would be cut by 200 million ringgit ($59.01 million) for every 100 ringgit drop in crude palm oil prices.

Crude palm oil prices KPOc3 have fallen more than 40 percent from a record peak in March but prices in the fiscal fourth quarter were still about 50 percent higher than the same period a year earlier.

With over 500,000 hectares of plantation land in Malaysia and Indonesia, Sime Darby is the world’s largest palm planter, accounting for about 6 percent of global palm oil production.

Sime shares fell 1.1 percent in the three months to June 30 when the quarter ended, outperforming a 4.9 percent fall in the benchmark index. (Reporting by Soo Ai Peng; Editing by Lincoln Feast)

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