KUALA LUMPUR (April 24): Sarawak Oil Palms Bhd (KL:SOP) reported a 43.5% drop in net profit for the first quarter ended March 31, 2026 (1QFY2026), weighed by unrealised derivatives losses of RM44.4 million due to commodity price and foreign exchange movements.

Net profit fell to RM64.31 million from RM113.76 million a year earlier, while revenue was largely unchanged at RM1.44 billion, as higher sales volume was offset by lower realised selling prices.

The group said the average realised price for palm oil products declined to RM4,314 per tonne from RM4,432 in the preceding quarter, while palm kernel products rose slightly to RM3,853 per tonne from RM3,818.

The impact was partially offset by lower production costs, supported by improved fresh fruit bunches (FFB) output, Sarawak Oil Palms said in its bourse filing.

The group declared a final dividend of six sen per share, up from four sen a year ago, bringing total dividends for FY2025 to 18 sen against 15 sen in FY2024. The entitlement date is June 29 and payment is scheduled for July 17.

On prospects, the group said performance will continue to be influenced by cyclical FFB production, global edible oil prices, and input costs such as fertilisers, chemicals and fuel. Nevertheless, it aims to improve efficiency through cost control and replanting initiatives.

Shares in Sarawak Oil Palms closed one sen, or 0.2%, lower at RM4.75 on Friday, giving the group a market capitalisation of RM4.27 billion. The stock has gained 61% over the past year.