KUALA LUMPUR (May 17): Sarawak Plantation Bhd is back in the black, posting a net profit of RM4.66 million for the first quarter ended March 31, 2019 (1QFY19) on the back of higher sales volume in crude palm oil (CPO) and palm kernel (PK).

In a bourse filing, the group said it posted a RM4.66 million net profit against a RM1.74 million net loss seen in the corresponding quarter a year ago.

Earnings per share for the quarter was 1.67 sen compared with a loss per share of 0.62 sen a year prior.

The group attributed this to higher sales volume of crude palm oil (CPO) and palm kernel (PK), while noting that a lower cost of sales, which was due to partially lower CPO and PK average selling prices.

The group said its revenue declined 2.16% to RM69.4 million, from RM70.94 million in the year-ago first quarter.

On a quarter-on-quarter (q-o-q) basis, Sarawak Plantation said  CPO and PK sales volume and average selling prices decreased. Sales volume fell to 26.3% and 25% for CPO and PK respectively, while average selling prices for PK dropped by 15.3%, and in the case of CPO, increased by 8.5%.

The group is proposing an interim single tier dividend of five sen a share, which results in a total dividend payout of RM14 million. The dividend will be payable on Aug 8, and the entitlement date is July 12.

On its prospects, the group said that it is largely dependent on palm oil price, which will in turn impact sales volume and operating costs.

“The group anticipates further improvements in production volume in the current financial year. In addition, the Group continues to focus on increasing productivity at all levels of operation, ultimately to reduce unit cost of production,” it added.

Sarawak Plantation’s shares were last traded at RM1.58, giving the group a market capitalisation of RM440.87 million.