KUALA LUMPUR (Aug 21): Sarawak Plantation Bhd's second quarter net profit fell 66% from a year earlier, on lower crude palm oil (CPO) prices.

In a statement to the exchange today, Sarawak Plantation (fundamental:2.4; valuation: 2.2) said net profit for the second quarter ended June 30, 2015 (2QFY15) fell to RM4.5 million, from RM13.34 million. Revenue was lower at RM87.46 million, against RM94.58 million.

"The decrease was principally due to the effect of lower realised average selling prices, offsetted by higher sales volumes for CPO and PK (palm kernel) during the current interim quarter," the company said.

During 1HFY15, Sarawak Plantation registered lower net profit at RM11.92 million, versus RM39.75 million a year earlier. Revenue fell to RM158.37 million, from RM198.58 million.

Going forward, Sawarak Plantation said its performance would largely depend on CPO and PK output and prices.

"Barring any unforeseen circumstances, the group expects to perform satisfactorily for the current financial year ending Dec 31," it said.

Sawarak Plantation's shares were untraded today. Yesterday (Aug 20), the stock closed lower at RM1.79 for a market capitalisation of RM500.4 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)