KUALA LUMPUR (Nov 28): Sarawak Oil Palms Bhd’s net profit grew 74% to RM30.91 million in the third quarter ended Sept 30, 2019 (3QFY19) from RM17.73 million last year, thanks to margin improvement in palm products sold.

Earnings per share increased to 5.41 sen from 3.11 sen, its quarterly results filing with Bursa Malaysia showed today.

The earnings improvement came despite an 18% drop in quarterly revenue to RM716.31 million from RM870.34 million, due to lower palm products' average realised prices and lower volume of palm products sold.

For the first nine months of FY19, its net profit fell 25% to RM40.93 million from RM54.33 million last year, as revenue fell 20% to RM2.05 billion from RM2.55 billion.

Earnings were lower for the period principally due to the decline in palm products' average realised prices and lower palm products transacted volume.

On prospects, Sarawak Oil Palms said the group’s performance would continue to be driven by fresh fruit bunches (FFB) production and palm products price movement which is dependent on the world edible oil market, ringgit movement and economic situation.

Shares of Sarawak Oil Palms closed one sen or 0.33% higher at RM3.08 today, valuing the company at RM1.76 billion. Year-to-date, the counter has surged some 47% from RM2.10. Notably, the stock reached a one-and-a-half-year high of RM3.31 last week.