KUALA LUMPUR (May 22): Sarawak Oil Palms Bhd's first quarter net profit came in over eight times higher year-on-year, mainly due to a fair value gain on derivatives and higher palm oil product prices. There was also a substantial decline in cost of sales.
Hence, despite selling less palm products, which pushed its revenue down 30% y-o-y to RM518.08 million from RM742.07 million, the group's net profit for the three months ended March 31, 2020 (1QFY20) rose to RM71.2 million from RM8.35 million in the year before.


Cost of sales fell to RM444.75 million, down 38% from RM721.45 million, its stock exchange filing today showed.
In arriving at its profit after tax, the group credited RM37.9 million in fair value changes on derivatives, compared to a charge of RM2.45 million previously.
On prospects, the group said its performance would continue to be driven by fresh fruit bunch production and palm products’ price movements, which are dependent on the world edible oil market, movements of the ringgit, and the economic situation.

https://www.theedgemarkets.com/article/sarawak-oil-palms-1q-profit-jumps-derivatives-fair-value-gain-higher-palm-product-prices
Source: theedgemarkets.com
Arjuna Chandran Shankar



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