Sarawak Oil Palms’ 3Q profit down 9% on higher costs, lower refined palm contribution
25/11/2025 (The Edge Malaysia) - Sarawak Oil Palms Bhd’s (KL:SOP) net profit for the third quarter declined 8.91% due to higher production costs and lower contribution from refined palm products, though this was partially cushioned by improved fresh fruit bunch (FFB) yields.
Net profit came in at RM110.95 million for the three months ended Sept 30, 2025 (3QFY2025), versus RM121.81 million a year earlier.
Revenue also slipped 3.33% to RM1.34 billion from RM1.38 billion due to lower average selling prices of crude palm oil (CPO) and palm kernel products.
The planter declared a second interim dividend of eight sen per share — to be paid on Dec 29 — bringing year-to-date total dividend to 12 sen per share, according to the group's filing with Bursa Malaysia.
For the nine months of FY2025, the group’s net profit grew 3.15% to RM316.63 million from RM306.95 million a year ago, as revenue rose 6.18% to RM4.08 billion from RM3.85 billion.
On its outlook, the group said performance will remain influenced by supply chain pressures on fertiliser, chemical and fuel costs, aside from FFB production and global edible oil prices.
The industry continues to face challenging economic conditions and volatile commodity prices, it said, even as it takes steps to improve production via cost controls and replanting programmes.
Shares of Sarawak Oil Palms fell five sen or 1.27% to RM3.88 on Tuesday, giving it a market capitalisation of RM3.48 billion.