KUALA LUMPUR: Sarawak Plantation Bhd
expects crude palm oil (CPO) prices to remain stable at current levels, supported by growing biofuel demand from Indonesia and Malaysia.
The plantation group said Indonesia’s implementation of the B50 biodiesel mandate and Malaysia’s ongoing biodiesel initiatives should provide support for CPO prices, while adverse weather that disrupts production could tighten supply and provide further upside.
However, it cautioned that geopolitical tensions, energy price volatility and global economic uncertainties remained key risks.
“Barring any unforeseen circumstances, and subject to a sustainable CPO price, the group anticipates delivering promising financial results for the current financial year,” it said.
For the second quarter ended June 30, Sarawak Plantation’s net profit jumped 45.3% to RM39.1mil, or earnings per share of 14 sen from RM26.9mil, or 9.63 sen a year earlier.
Revenue rose 12.5% to RM147.3mil from RM131mil.
The stronger performance was mainly driven by higher sales volumes and average selling prices of CPO and palm kernel (PK).
CPO sales volume rose 3.4% while PK sales volume increased 11.9%. Realised average selling prices of CPO and PK increased 10.1% and 7.2%, respectively.
For the first half, net profit rose 25.6% to RM62.1mil from RM49.5mil, despite revenue falling 5.3% to RM252.5mil.
Sarawak Plantation declared a 7.5 sen per share dividend, totalling about RM21mil, for FY26, payable on Sept 29, 2026.
The group said it would continue to focus on cost management and operational efficiency to mitigate rising costs and business risks while improving production and productivity.
