Sarawak Oil Palms net profit widens to RM154.46mil in 2Q on higher palm product prices
KUALA LUMPUR: Sarawak Oil Palms Bhd's net profit widened to RM154.46 million in the second quarter ended June 30, 2022 (Q2 2022) from RM98.32 million in the same period last year, mainly attributed to higher average realised prices of palm products sold.
In a filing with Bursa Malaysia, the company said revenue increased to RM1.40 billion compared to RM949.05 million previously.
"The group's profit before tax for the current quarter was RM209.3 million compared with RM146.6 million reported in the corresponding quarter last year. Both increases in revenue and profit before tax was mainly attributed to higher average realised prices of palm products sold,” it said.
For the six month period ended June 30, 2022, Sarawak Oil Palms posted a net profit of RM349.45 million against RM177.38 million in the same period a year ago.,
Revenue stood at RM2.83 billion against RM1.74 billion in the corresponding period in 2021.
Sarawak Oil Palms also declared an interim single-tier dividend of four sen per share, on 890.16 million ordinary shares for the financial year ending Dec 31, 2022 amounting to RM35.61 million.
On prospects, the company said its performance would continue to be driven by the fresh fruit bunches (FFB) production which is affected by labour shortage and global world edible oil prices movement.
"This is further exacerbated by the effect of supply chain on fertilisers and chemicals and fuel prices which will affect the costs of production,” it said.
Moving forward, the movement of foreign currency exchange against ringgit and the labour shortages will continue to pose challenges to the group, it said. - Bernama