03/08/2012 (Bernama) - OSK Research has upgraded Sarawak Oil Palms Bhd's (SOP) financial year 2013 (FY13) estimated earnings to RM314.1 million, up 5.7 per cent from RM297.1 million previously.

In a note today, OSK said the upward revision followed its 2013 average crude palm oil price assumption upgrade to RM3,500 per tonne, which led to positive financial year 2013 earnings adjustments across its plantation universe.

"Following our upgrade to overweight on the plantation sector on expectations of an El Nino lifting prices in 2013, we raise our FY13 earnings estimates by six per cent," it said.

OSK said said as SOP's production was lacklustre in first half of this year, it has FY12 fresh fruit bunch production growth forecast and FY12 earnings estimates by eight per cent.

"Despite our forecast changes and a likely challenging second quarter FY12 earnings performance, the company is still trading at an attractive 13.4 times FY12 price earnings ratio (PER) and 9.5 times FY13 PER.