KUALA LUMPUR (Aug 23): Sarawak Oil Palms Bhd suffered an 84% year-on-year fall in its net profit to RM1.68 million in its second quarter ended June 30, 2019 (2QFY19) from RM10.53 million before, as a result of an adverse price impact.

Quarterly revenue shrank 23.8% to RM590.2 million from RM774.91 million in 2QFY18, an exchange filing today showed.

Sarawak Oil Palms in its filing attributed the decrease in revenue to lower palm products average realised prices, coupled with the lower volume of palm products transacted.

This brings the group’s first-half (1HFY19) net profit to RM10.02 million down 72.6% from RM36.6 million in the corresponding period a year ago, while revenue came in 20.7% lower at RM1.33 billion compared with RM1.68 billion in 1HFY18.

The lower earnings are due to the decline in palm products average realised prices and lower palm products transacted volume.

Sarawak Oil Palms said the performance of the group going forward would continue to be driven by fresh fruit bunches (FFB) production and palm products' price movements, which are dependent on the world edible oil market, fluctuation of the ringgit and the economic situation.

As at 6pm today, the benchmark palm oil futures for November delivery were traded RM7 higher at RM2,263 a tonne.

Shares in Sarawak Oil Palms closed five sen or 2.38% down at RM2.05 apiece, bringing it a market capitalisation of RM1.17 billion.