Sarawak Plantation Profit Up 7%

Published: 2009/02/26

SARAWAK Plantation Bhd's (SPB) revenue for the financial year ended Dec 31, 2008 rose by seven per cent to RM262 million from RM244 million in the same period of 2007 despite facing challenging times.

In a statement here today, SPB said the higher revenue was mainly due to higher average crude palm oil (CPO) prices. However, group pre-tax profit for the financial year ended Dec 31, 2008, fell by 18 per cent to RM67.6 million from RM82.7 million in the same period of 2007.

"This is due to higher production costs following the increase in fertiliser, agrichemical and fuel prices as well as imposition of cooking oil stablisation cess since June 2007 and windfall tax since July last year," it said.

SPM said it would pay a four-sen dividend for financial year ended Dec 31, 2008. Last September it paid an interim dividend of seven sen. It said with the current low CPO prices, SPM would continue to seek operational efficiency enhancement to mitigate the impact arising from lower CPO revenue on its financial performance.

"The measures include prudent spending, cost rationalisation and cost control besides increasing milling efficiency and improving oil extractionrate," it said. SPB said it expected a challenging year ahead but was confident its performance for the next financial year would be stable subject to the outlook of crude oil and global oils and fats market.

The company produced 10,012.82 metric tonnes of CPO, 31,614.10 metric tonnes of fresh fruit bunches and 2,350.48 metric tonnes of palm kernel as at November last year. It has a landbank of 51,161 hectares. -- BERNAMA