Sarawak Oil Palms profit falls 43% in 1Q amid cost pressures, price volatility


PETALING JAYA: Sarawak Oil Palms Bhd's (SOP) financial performance will continue to be driven by the cyclical fresh fruit bunches production and global world edible oil price movements.

Any effects on supply chain due to fertilisers, chemicals and fuel prices will affect its costs of production, the company said in its Bursa Malaysia filing.

As such, SOP is taking effective steps to improve its production through better efficient management, including cost control and replanting program.

Notwithstanding this, it said the industry will continue to face challenges in view of global economic conditions and volatile commodity prices.

Its latest quarterly results for the first quarter ended Mar 31, 2026 (1Q26) saw its net profit declining by 43.47% year-on-year (y-o-y) to RM64.31mil while revenues was relatively flat at RM1.44bil.

Basic earnings per share for the quarter was at 7.16 sen while a final dividend of six sen was proposed by its board of directors.

The dividend declared will go-ex on June 29 and be paid out on Jul 17.

"At the forthcoming annual general meeting, a final dividend amounting to a dividend payable of RM53.964mil will be proposed for shareholders’ approval," it said.

Meanwhile, the company on Friday also saw the retirement of an independent and non-executive director Fong Yoo Kaw @ Fong Yee Kow (Victor) aged 73.

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