KUALA LUMPUR (Aug 28): Sarawak Oil Palms Bhd’s (KL:SOP) second-quarter net profit jumped 67.2% thanks to higher sales volumes and realised prices of crude palm oil (CPO) and palm kernel.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM153.69 million from RM91.92 million a year earlier, the company said in a bourse filing. Revenue increased 11.6% to RM1.46 billion from RM1.31 billion a year ago.

Earnings per share rose to 17.05 sen from 10.28 sen a year ago.

The group’s operating profit jumped 72% to RM204.67 million from RM118.87 million a year earlier, as an unrealised gain on forward foreign currency and commodity derivatives contracts, as well as improved operational efficiency, further supported its bottom line.

The average selling price of CPO rose 4.29% to RM4,499 per tonne from RM4,314 from the previous quarter (1QFY2026), while palm kernel prices increased 9.94% to RM4,236 per tonne from RM3,853.

For the first six months of FY2026, Sarawak Oil Palms’ net profit rose nearly 6% to RM218 million from RM205.68 million a year ago, while revenue increased 5.6% to RM2.90 billion from RM2.75 billion. Cumulative earnings per share rose to 24.22 sen from 23.01 sen.

The company declared a dividend of five sen per share, payable on Oct 16.

The group said performance for the second half of the year will be influenced by supply chain pressures on fertiliser, chemical and fuel costs, aside from fresh fruit bunch production and global edible oil prices.

The industry continues to face challenging economic conditions and volatile commodity prices, it said, even as it takes steps to improve production via cost controls and replanting programmes.

Shares of Sarawak Oil Palms fell eight sen or 1.47% to RM5.35 on Friday, giving it a market capitalisation of RM4.87 billion. Year-to-date, the stock is up 42.67%.