KUALA LUMPUR (Aug 21): Sarawak Plantation Bhd's (KL:SWKPLNT) second quarter net profit rose 45%, lifted by higher sales volume and prices of crude palm oil (CPO) and palm kernel.
Net profit for the quarter ended June 30, 2026 (2QFY2026) rose to RM39.06 million from RM26.87 million a year earlier while revenue increased 12.5% to RM147.30 million from RM130.98 million, according to the group’s bourse filing on Friday.
Operating profit before tax rose 57.5% to RM43.7 million from RM27.7 million, supported by the higher sales volumes and realised average selling prices of CPO and palm kernel.
CPO sales volume rose 3.5% while the average selling price increased 10.1% compared to a year earlier. Meanwhile, palm kernel sales volume increased 11.9% with the average selling price rising 7.2%.
The group declared a second interim dividend of 7.5 sen per share, payable on Sept 29.
For the first six months of FY2026, the group's net profit rose 25.6% to RM62.15 million from RM49.50 million a year earlier, driven by better results of the estate operation following higher palm oil productions.
Half year revenue, however, declined 5.3% to RM252.48 million from RM266.48 million, attributable to marginally lower average selling prices of CPO and palm kernel, and lower sales volume of CPO.
CPO sales volume during the six months declined 5% while the average selling price decreased 2.2% compared to a year earlier. Meanwhile, palm kernel sales volume increased 9.8%, but the average selling price was lower by 0.5%.
Looking ahead, Sarawak Plantation said the CPO price outlook remains cautiously positive despite geopolitical tensions, energy price volatility and global economic uncertainties.
“In addition, any adverse weather conditions that disrupt production could tighten supply and provide upside support to CPO prices,” it said.
“Barring any unforeseen circumstances, and subject to a sustainable CPO price, the group anticipates delivering promising financial results for the current financial year,” it added.
Shares of Sarawak Plantation closed up one sen or 0.22% to RM4.54 on Friday, giving the group a market capitalisation of RM1.27 billion.