Sarawak Plantation's 2Q net profit up marginally to RM30 mil

KUALA LUMPUR (Aug 23): Sarawak Plantation Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) grew marginally by 2.12% year-on-year to RM30 million from RM29.39 million amid lower sales volume of crude palm oil (CPO) and palm kernel (PK).

Quarterly revenue increased 7.56% to RM207.13 million from RM192.56 million, it said in a Bursa Malaysia filing on Tuesday (Aug 23).

Revenue for its oil palm operations — which contributed to 99.9% of the group's total revenue in 2QFY22 — climbed to RM206.9 million from RM192.4 million, primarily attributable to the effect of higher realised average selling prices of CPO by 53.9% and of PK by 34.9%.

For the cumulative six months ended June 30, 2022, the group's net profit jumped 38% to RM73.32 million from RM53.14 million as revenue increased 15.6% to RM391.02 million from RM338.1 million.

Sarawak Plantation highlighted that the continued labour shortages along with rising operating costs remain a great challenge to the oil palm plantation sector.

However, CPO price is currently sustainable at around RM4,000 per mt, which is still above the unit production cost.

"In addition, the group's financial position remains healthy with a reasonable level of liquidity and low gearing. Barring any unforeseen circumstances and with the peak crop months approaching, the board of directors anticipates to achieve a satisfactory financial performance for financial year 2022," the group added.

Shares in Sarawak Plantation went up two sen to close at RM2.22 on Tuesday with some 41,600 shares changing hands, giving it a market capitalisation of RM621.6 million.