KUALA LUMPUR (Feb 23): Sarawak Plantation Bhd fell into the red with a net loss of RM38.29 million for the fourth quarter ended Dec 31, 2017 (4QFY17) due to impairment losses, driving the group into its first annual net loss.

In the previous year’s corresponding quarter, the group posted a net profit of RM6.58 million.

Revenue fell 10% to RM100.12 million from RM110.95 million in 4QFY16, Sarawak Plantation said in a filing with Bursa Malaysia.

The lower revenue was attributed to lower realised average selling prices of crude palm oil (CPO) and palm kernel and lower sales volume of palm kernel, which were offset by higher sales volume of CPO during the quarter.

Meanwhile, the net loss was due to the lower revenue and losses on impairment of plantation development expenditure, property, plant and equipment and other assets, totalling RM43 million.

For FY17, Sarawak Plantation posted a cumulative net loss of RM10.25 million, versus a net profit of RM22.21 million in FY16, despite a 4% increase in revenue to RM399.18 million, from RM383.97 million.

Going forward, the group said it will continue its efforts to improve its performance and achieve satisfactory results in FY18, but said its performance depends on the production, operation efficiency, and CPO and palm kernel prices.

Sarawak Plantation’s share price rose 1 sen or 0.56% to RM1.79 today, giving it a market capitalisation of RM500.42 million.