KUALA LUMPUR (Nov 22): Sarawak Plantation Bhd (KL:SWKPLT) has announced a second interim dividend of 15 sen per share, as its latest third quarter net profit rose 14.6%, despite lower revenue, thanks largely to a higher fair value gain on its biological assets.
The latest dividend payout is 32.7% more than the group's earnings per share (EPS) of 11.3 sen for the third quarter ended Sept 30 (3QFY2024), the group's bourse filing on Friday showed. It is also three times the five sen per share dividend it paid in the same quarter last year, which was about half its EPS of 9.72 sen then.
The latest bumper dividend declared amounts to a payout of RM42 million, to be paid to shareholders on Dec 27, 2024. It also raised the group's year-to-date dividends to 20 sen per share, matching its highest annual dividend payout of 20 sen per share, recorded in FY2021.
The group had cash and cash equivalents of RM140.3 million as at end-September, while borrowings totalled RM40.09 million.
Sarawak Plantation made a net profit of RM31.07 million for 3QFY2024, as opposed to RM27.12 million for 3QFY2023. Revenue fell 13.7% to RM149.07 million from RM172.65 million due to lower sales of crude palm oil (CPO) and palm kernel (PK), despite higher average selling prices.
It recorded a higher gain on fair value changes of biological assets of RM9.3 million in 3QFY2024, compared to RM1.2 million in 3QFY2023.
For the first nine months of FY2024, the group's net profit jumped 36.1% to RM75.84 million from RM55.71 million, though cumulative revenue slipped 0.88% to RM407.85 million from RM411.45 million.
Noting that CPO prices surged to their highest level since July 2022 at above RM5,000 per tonne, Sarawak Plantation said the anticipated tight supply of vegetable oils and rising demand for palm oil will contribute to a favourable price outlook.
The group also said it remains committed to prioritising replanting for sustainable yield and production, while it focuses on achieving a reasonable level of production and cost-effectiveness.
Shares in Sarawak Plantation settled three sen or 1.31% higher at RM2.32 on Friday, giving the plantation company a market capitalisation of RM650 million. Year-to-date, the stock has risen 11%.