KUALA LUMPUR: Sarawak Oil Palms Bhd’s (SOP) performance will continue to be driven by the cyclical fresh fruit bunches (FFB) production, global world edible oil price movement, effect of supply chain on fertilisers, chemicals and fuel prices which will affect the costs of production.
“The group is taking effective steps to improve its production through an aggressive recovery program, including cost control and replanting program.
“Notwithstanding this, industry will continue to face challenges in view of global economic conditions and softening of commodity prices,” SOP said in a filing with Bursa Malaysia.
In the third quarter ended Sept 30, SOP’s net profit rose 14.8% to RM94.5mil, or earnings per share of 10.62 sen compared with RM82.3mil, or 9.25 sen a year ago.
Revenue, however, was lower by 3.8% to RM1.27bil from RM1.32bil last year.
SOP posted a net profit of RM186.8mil on revenue of RM3.65bil in the first nine months to Sept 30.
The group has declared an interim single-tier dividend of four sen per share for the financial year ending Dec 31 amounting to RM35.6mil.