KUCHING: Sarawak Plantation Bhd (SPB) has posted stronger quarterly earnings with group net profit surged to RM22.63 million during January-March 2025 period (1Q2025) from RM19.1 million a year ago as revenue expanded to RM135.5 million from RM127.3 million.
The earnings growth was driven by higher realised selling prices of crude palm oil (CPO) and palm kernel (PK) despite their lower sales volumes in the current quarter under review.
The company’s earnings per share rose to 8.11 sen from 6.84 sen previously.
The company has declared a 5 sen per share interim dividend.
In 1Q2025, SPB’s oil palm operation generated higher revenue of RM135.1 million (1Q2024:RM127.1 million) and contributed 99.7 per cent to group revenue.
“The increase was principally attributable to the higher realised average selling prices of CPO and PK by 21.3 per cent and 67.3 per cent respectively despite lower sales volume of CPO and PK by 17.1 per cent and 20.7 per cent respectively during the current interim quarter,” SPB said in explanatory notes to its financial results.
The oil palm operation recorded segment profit of RM65.6 million whereas the palm oil mill operation contributed RM4.2 million in 1Q2025.
In 1Q2025, the group reported operating pre-tax profit for the oil palm operation (after deducting administrative and finance cost) of RM26.4 million that compared favourably with RM15 million in 1Q2024 in line with expanded revenue.
As compared to the immediate preceding quarter (4Q2024), SPB registered higher group pre-tax profit of RM31 million (4Q2024:RM21.8 million) mainly due to a gain on fair value changes of biological assets of RM4.1 million as compared to a loss of RM10.9 million previously.
In the current quarter, SPB posted lower group operation profit of RM26.9 million (4Q2024:RM32.7 million) as a result of the effect of lower sales volumes of CPO and PK by about 4.4 per cent and 10.8 per cent respectively despite higher realised average selling price of CPO and PK by about 1.6 per cent and 11.2 per cent respectively.
Commenting on prospects for FY2025, SPB said the global economic outlook remains uncertain following reciprocal tariffs announced by the United States last month, and the geopolitical tensions, on-going supply chain disruptions and the extent of the economic impact of the rising trade tension continue to be major concerns moving forward.
“Since beginning of May 2025, CPO price had declined to around RM4,000 per metric tonne.
However, tariff tension seems to have relaxed, Global trade may return to normal and potentially lessen the pressure on economic uncertainties.
“In response to current market challenges and the uncertainties surrounding the economic and palm oil industry outlook, the group remains committed to a strategic approach focused on enhancing productivity and operational efficiency.
At the same time, the group intensified efforts in cost rationalisation and continues to adopt prudent cash flow management to reinforce financial resilience.
“Barring any unforeseen circumstances, the board of directors expects improved production performance for the current financial year, and subject to a sustainable CPO price, anticipates achieving satisfactory financial results,” added SPB.
