PETALING JAYA: Sarawak Oil Palms Bhd

(SOP) recorded strong growth for the second quarter ended June 30, 2026 (2Q26), backed by higher sales volumes, stronger palm product realisations, derivative gains, and operational efficiencies.

In a filing with Bursa Malaysia, SOP said its net profit jumped 67.2% year-on-year (y-o-y) to RM153.69mil, supported by an 11.6% y-o-y increase in revenue to RM1.46bil. Earnings per share increased to 17.05 sen versus 10.28 sen a year ago.

For the cumulative six-month period (1HFY26), net profit expanded 6% y-o-y to RM218mil on the back of a 5.6% increase in revenue to RM2.90bil, driven primarily by higher sales volumes.

On a sequential basis, net profit leapt 139% quarter-on-quarter from RM64.31mil in 1Q26, while pre-tax profit climbed 117.9% despite top-line revenue rising a modest 0.9%.

SOP said the average realised selling prices strengthened across both core segments during the quarter.

Palm oil products reached RM4,499 per tonne in 2Q26, compared to RM4,314 a tonne in 1Q26. Similarly, palm kernel products expanded to RM4,236 per tonne against RM3,853 a tonne in the preceding quarter.

The board declared an interim single-tier dividend of five sen per share, amounting to RM45.53mil, payable on Oct 16. This follows a six sen final dividend for FY25, amounting to RM54.55mil, paid on July 17.

Moving into the second half of FY26, management expects financial performance to remain closely tied to cyclical fresh fruit bunch production output, global edible oil market price trends, and persistent supply-chain cost pressures surrounding fertiliser, chemicals, and fuel.