KUCHING: Sarawak Plantation Bhd (SPB) has posted impressive earnings, with group net profit more than doubled to RM127.8 million in financial year ended Dec 31, 2021 (FY2021) from RM61.4 million in FY2020 as revenue surged to RM790.5 million from RM465.8 million, thanks to robust palm oil market .
Earnings per share rose to a solid 45.81 sen from 22.01 sen.
The strong profits were attributed to the double effects of higher realised average selling prices and sales volume of crude palm oil (CPO) and palm kernel (PK).
During the current financial year, Sarawak Plantation said the oil palm operations segment contributed nearly the entire or 99.9 per cent to group revenue.
The segment comprises estate and mill operations, which recorded revenue of RM271 million and RM728.1 million respectively and segment profit of RM151 million and RM16.6 million respectively.
“Revenue of the oil palm operations increased by RM324.8 million to RM789.6 million in the current financial year compared with RM464.8 million reported in the preceding year.
“The increase was principally attributed to the effect of higher realised average selling price and higher sales volume of CPO and PK during the current financial year. Average selling prices of CPO and PK increased by 62.3 per cent and 79.4 per cent respectively and sales volume of CPO and PK increased by approximately 2.6 per cent and 3.8 per cent respectively for the current financial year,” added the company in notes to its financial results.
In Q42021, Sarawak Plantation recorded group net profit of RM32.5 million (Q42020:RM16.7 million) as revenue shot up to RM243.6 million (RM132.2 million).
“Revenue of the oil palm operations increased by RM111.4 million to RM243.4 million in the current interim quarter compared with RM132 million reported in the corresponding period of the preceding year.
“The increase was principally attributable to the effect of higher average selling price of CPO and PK by 59.4 per cent and 89.1 per cent respectively and sales volume of CPO and PK by approximately 15.5 per cent and 22.9 per cent respectively in the current interim quarter,” said Sarawak Plantation.
However, compared to Q32021,Sarawak Plantation recorded lower pre-tax profit of RM43.8 million, down from RM52 million, due mainly to loss arising from fair value changes in biological assets of RM11.8 million.
Going forward, the company said the outlook for the palm oil industry this year is optimistic.
“Crude palm oil price is likely to remain bullish for the first quarter of year 2022 due to low palm oil inventories, unfavourable weather conditions and prolonged labour shortage.CPO price for year 2022 could be maintained at the similar level as per year 2021 in view of the anticipated tight supply and rising demand.
“The group’s production is expected to improve in anticipation of a gradual intake of foreign workers to ease the labour shortage issue. Attention continues to be placed on employees’ and workers’ welfare and conducive living environments are always provided. Employees and workers comply with the standard operating procedures at all times. The group continues to maintain measures to mitigate Covid 19 risks in order to keep its workforce safe and ensure sustainable operation,” added Sarawak Plantation.
