KUALA LUMPUR (May 20): Sarawak Plantation Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) surged 82.35% to RM43.31 million, from RM23.75 million a year earlier, on the back of higher operating profit and higher gain arising from changes in fair value of biological assets of RM17.59 million.

Earnings per share rose to 15.52 sen from 8.51 sen, according to the plantation group’s bourse filing on Friday (May 20).

The group said the higher operating profit was driven by its increased quarterly revenue of RM183.89 million in the quarter under review, which was 23.36% higher versus the RM145.53 million it logged in 1QFY21.   

The group declared a single-tier dividend of five sen per share with an ex-date of June 3, 2022, and is to be paid on June 24.

Sarawak Palm said its oil palm operations segment — comprising estate and mill operations — contributed 99.9% of its quarterly revenue of RM183.89 million.

“Revenue of the oil palm operations increased by RM38.4 million to RM183.7 million in the current interim quarter, compared with RM145.3 million reported in the corresponding period of the preceding year,” it said, attributing the increase to the higher realised average selling price of crude palm oil (CPO) and palm kernel (PK).

The group said the increased realised average selling prices of CPO and PK of 55.5% and 84.2% respectively, counteracted the lower CPO and PK sales volume of 21.6% and 16.9% respectively.

“During the current interim quarter, estate operations recorded a revenue and segment profit of RM76.4 million and RM40.8 million respectively, whereas mill operations recorded a revenue and segment profit of RM167.5 million and RM1.7 million respectively,” it added.

Addressing its prospects, Sarawak Plantation said CPO price is “likely to remain bullish” in the first half of 2022, mainly fuelled by high crude oil prices due to the tight supply of edible oil.

“CPO price is expected to be moderated in the second half of 2022, following anticipated recovery in production,” it noted, also adding that it anticipates its production to improve from 2QFY22 onwards. 

Barring any unforeseen circumstances, as well as on the assumption that a reasonable production level is maintained, the group said it expects to achieve a satisfactory financial performance for FY22.

Sarawak Plantation shares finished three sen or 1.12% higher at RM2.70 on Friday, giving the group a market capitalisation of  RM756 million.