KUCHING: BLD Plantation Bhd
has replanted approximately 2,000ha of oil palms in the 12-month period to March 31, 2026 (FY26).
The replanting was carried out in matured areas with palm age of more than 26 years in the Sawai land district in Miri, according to BLD in its 2026 annual report.
The matured areas cover an approximate 38,000ha, which accounts for the bulk of the group’s total planted area of 40,000ha.
The group will continue its ongoing replanting programme to support long-term productivity, while focusing on upgrading infrastructure and facilities, and expanding mechanisation to enhance operational efficiency, BLD said in a management discussion and analysis report.
Year-on-year (y-o-y), BLD increased the production of crude palm oil by 8,300 tonnes to 129,600 tonnes (FY25: 121,300 tonnes) as its two mills in Sibu and Miri were operating at around the installed capacity of 90 tonnes and 60 tonnes per hour of fresh fruit bunches, respectively.
BLD – which also owns and operates a refinery in Bintulu – significantly raised palm oil product sales to 588,500 tonnes from 525,400 tonnes, mainly to overseas markets.
Group revenue surged y-o-y to approximately RM2.05bil from RM1.76bil previously, boosted by the combined effects of increased sales volumes and a higher average selling price for palm products.
However, the expanded turnover did not translate into higher earnings, as the group pre-tax profit fell to RM70mil from RM95mil due to unfavourable changes in fair value of biological assets and foreign- exchange movements.
“Looking ahead to 2026, market dynamics are expected to be shaped by tightening global supply, expanding biodiesel mandate, weather-related uncertainties, evolving sustainability and traceability requirements, and geopolitical tensions affecting global supply chains.
“Market conditions are further influenced by the continued price competitiveness of palm oil relative to other vegetable oils. On the cost front, the industry continues to face pressures from labour constraints, rising input costs and commodity price volatility,” said BLD.
In the second half of financial year 2026, the company expects palm oil prices to remain at favourable levels in view of the anticipated impact of the El Nino weather phenomenon and tightening of global edible oil supplies.
BLD said the group will focus on cost management and continue to monitor developments within the industry, as well as adopt appropriate measures to address emerging challenges and opportunities.
