Sarawak Oil Palms’ 1Q profit jumps on derivatives' fair value gain, higher palm product prices Arjuna Chandran Shankar theedge May 22, 2020 19:08 pm 08
KUALA LUMPUR (May 22): Sarawak Oil Palms Bhd's first quarter net profit came in over eight times higher year-on-year, mainly due to a fair value gain on derivatives and higher palm oil product prices. There was also a substantial decline in cost of sales.
Hence, despite selling less palm products, which pushed its revenue down 30% y-o-y to RM518.08 million from RM742.07 million, the group's net profit for the three months ended March 31, 2020 (1QFY20) rose to RM71.2 million from RM8.35 million in the year before.
Cost of sales fell to RM444.75 million, down 38% from RM721.45 million, its stock exchange filing today showed. In arriving at its profit after tax, the group credited RM37.9 million in fair value changes on derivatives, compared to a charge of RM2.45 million previously.
On prospects, the group said its performance would continue to be driven by fresh fruit bunch production and palm products’ price movements, which are dependent on the world edible oil market, movements of the ringgit, and the economic situation.
Sarawak Oil Palms’ shares finished 3.39% or 10 sen lower at RM2.85 today, giving the group a market value of RM1.63 billion.
PH government helped alot by looking up business consumers in China , as SOP successfully signed contracts to supply large amount oil to china businesses.,this reflected in the quarterly report. While this round has other factors involved, something to do global food shortage..
in another developement, China has announced that they stop buying soyabean and oil , pork etc from US, if they come here for our oil, so good luck lah.
Usually by the end of year with lower production and higher palm-oil selling price ,then SOP stock price would be possible touch 4 rm.However this month , We saw the export figure with a big jump up , if can continue , could then come earlier.
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