KUALA LUMPUR (Nov 19): Sarawak Plantation Bhd's net profit for the third quarter ended Sept 30, 2021 (3QFY21) surged 115.95% to RM42.16 million from RM19.52 million a year ago, in line with the increase in operating profit coupled with gain arising from changes in fair value of biological assets of RM12.8 million for the current interim quarter.

As such, its earnings per share doubled to 15.11 sen from seven sen, its filing with Bursa Malaysia on Friday showed.

Quarterly revenue rose 52.15% to RM208.79 million from RM137.22 million in 3QFY20 due to the effect of higher realised average selling prices despite lower sales volume of crude palm oil (CPO) and palm kernel during the current interim quarter.

On a quarterly basis, Sarawak Plantation recorded a net profit of RM29.39 million and revenue of RM192.56 million in the immediate preceding quarter (2QFY21).

For the cumulative nine-month period, Sarawak Plantation's net profit jumped 113.04% to RM95.29 million from RM44.73 million, while revenue was up 63.97% to RM546.88 million from RM333.53 million.

On prospects, Sarawak Plantation said Malaysia's palm oil industry has been experiencing acute labour shortages due to border closures arising from the ongoing Covid-19 pandemic.

"Malaysia's CPO production declined by 9% for the nine-month period of 2021 compared with the nine-month period of 2020. Tight supply has resulted in a very bullish CPO price that reached its highest in the history of the palm oil industry," it said.

Notwithstanding that, Sarawak Plantation noted the government recently announced it would approve the intake of 32,000 foreign workers, which would ease the shortages faced by the industry.

"However, the positive impact on production is likely to be seen in 2022. In view thereof, CPO price is likely to remain bullish for the remainder of the year 2021.

"The group's production is maintained at a reasonable level despite labour shortages. Employees and workers comply with the standard operating procedures at all times.

"The group [also] continues to maintain measures to mitigate Covid-19 risks in order to keep its workforce safe and ensure sustainable operation," it said.

Sarawak Plantation's shares settled unchanged on Friday at RM2.47, bringing a market capitalisation of RM689.21 million.