26.08.2020 (www.theedgemarkets.com) - KUALA LUMPUR (Aug 26): Sarawak Oil Palms Bhd's net profit soared by some 23 times to RM38.34 million for the second quarter ended June 30, 2020, compared with RM1.67 million a year ago, thanks to higher average prices of palm products sold and fair value gain on derivatives.
Revenue rose 6.08% to RM626.06 million from RM590.20 million, the group's stock exchange filing showed.
Net profit for the cumulative six-month period ended June 30, 2020 jumped by almost 11 times to RM109.55 million from RM10.02 million a year ago. This was despite cumulative revenue falling by 14.12% to RM1.14 billion from RM1.33 billion on lower volume of palm products sold.
Moving forward, the group said its performance would continue to be driven by fresh fruit bunches production and palm products' price movement — which is dependent on the world edible oil market, the movement of ringgit and the economic situation.
Sarawak Oil Palms' shares closed 12 sen or 3.32% higher at RM3.73, valuing the group at RM2.13 billion. The stock has rebounded 92% from its March low of RM1.94, but is still down 9.5% year-to-date.