Latest news with #SarawakPlantation
Borneo Post
22-05-2025
- Business
- Borneo Post
Decent start to Sarawak Plantation's year
Sarawak Plantation's commendable results were mainly boosted by an increase in CPO prices and FFB production. KUCHING (May 22): Excluding the gain on the fair value of biological assets (RM4 million) and minority interests (RM0.3 million), Sarawak Plantation Bhd (Sarawak Plantation) kicked off its first quarter of financial year 2025 (1QFY25) with core earnings of RM17.2 million, accounting for 21 per cent of the street's full-year expectations. Analysts said the commendable results were mainly boosted by an increase in crude palm oil (CPO) prices and fresh fruit bunch (FFB) production. The team with Public Investment Bank Bhd (PublicInvest Research) saw that Sarawak Plantation's topline improved from RM127.3 million to RM135.5 million, on the back of stronger CPO prices and increased FFB production. Meanwhile, 1QFY25 FFB production climbed 6.1 per cent year on year (y-o-y) to 73,940 metric tonnes (MT) while third-party purchase FFB tumbled 28.7 per cent to 54,129MT. Its 1QFY25 average CPO price surged from RM3,898 per MT to RM4,728 per MT while average palm kernel price jumped from RM2,062 per MT to RM3,451 per MT. '1QFY25 FFB yield improved from 3.31MT per hectare (MT/ha) to 3.74MT/ha while its oil extraction rate (OER) slipped from 19.77 per cent to 19.05 per cent. 'This was dragged by lower FFB processed; lower oil content; and prolonged wet period that affected the transportation activities.' The weather has normalised since April, leading to a strong production recovery in northern and central Sarawak regions. PublicInvest Research expects Sarawak Plantation's production to peak in August compared to the usual October/November period. Meanwhile, management has lowered its FFB production target by five per cent to 400,000MT to reflect the weaker-than-expected production in the beginning of the year. It has retained its replanting target of 2,800ha for this year. There is no new planting activity being carried out. As of March-2025, mature area stood at 20,000ha while the immature area totaled 7,700ha. There is a plantable area of 2,000ha Average age profile stood at nine years. Due to the persistent rainfall, the first round of fertiliser application only achieved 66 per cent. Meanwhile, the outstanding encumbered area stays around 2,000ha while there is no enhancement area. It is worth noting that there is a new recruitment fee introduced by Sarawak state government with the one-off charge of RM1,800 per worker for the permit application starting this year, which could see a negligible financial impact on the company bottom line. 'The company has no forward sales policy in place, hence, we expect the realized CPO prices for the coming quarters to reflect the prevailing levels of less than RM4,000 per MT. 'Lastly, management has allocated capex of RM56 million with RM42 million set aside for replanting and the remaining RM14 million for mill upgrades and maintenance.' CPO first quarter palm oil Sarawak Plantation
The Star
21-05-2025
- Business
- The Star
Sarawak Plantation records higher 1Q25 net profit
The company's revenue in 1Q25 grew to RM135.51mil from RM127.32mil a year earlier. PETALING JAYA: Sarawak Plantation Bhd expects the global economic outlook to remain uncertain following reciprocal tariffs announced by the United States in April 2025. In a filing with Bursa Malaysia, the plantation group said geopolitical tensions, ongoing supply chain disruptions and the extent of the economic impact of the rising trade tensions continue to be major concerns moving forward. For the first quarter ended March 1, 2025 (1Q25), Sarawak Plantation's net profit rose to RM22.63mil from RM19.07mil in the previous corresponding quarter, mainly due to the effect of higher realised average selling price of crude palm oil (CPO) and palm kernel (PK) despite lower sales volume of CPO and PK during the current interim quarter. Revenue in 1Q25 grew to RM135.51mil from RM127.32mil a year earlier. 'In response to current market challenges and the uncertainties surrounding the palm oil industry outlook, the group remains committed to a strategic approach focused on enhancing productivity,' it said.
The Star
07-05-2025
- Business
- The Star
Sarawak Plantation exceeds replanting target
KUCHING: Sarawak Plantation Bhd has aggressively pursued oil palm replanting, covering some 4,200ha last year to bolster future crop production growth. This achievement, according to executive director Datuk Wong Kuo Hea, was the result of meticulous planning and efficient execution, exceeding the company's replanting target by 5%. He added that RM54mil in capital expenditure was incurred on replanting and maintaining the group's existing immature estates in 2024. This was more than double the RM25.1mil spent on the replanting programme and estate maintenance in 2023. 'Replanting is a significant milestone for the group because it ensures long-term sustainable growth. Low-yielding old mature fields, as well as severe ganoderma infested areas, are replanted in stages. 'These areas were replanted with high-yielding seeds and are expected to drive up production growth in the coming years,' he said in the company's 2024 annual report. The high-quality seeds used were sourced from Sarawak Plantation's own nurseries, which also saw an 86% increase in sales, reaching 930,000 seeds to external parties last year compared to 2023. As one of the pioneers in Sarawak's oil palm industry, the Miri-based group has a total landbank of 42,166ha, with an additional 412ha under a joint-venture development with a state agency. The plantable area totals about 36,232ha. Currently, the group owns 13 oil palm estates and two palm oil mills across northern and central Sarawak. Sarawak Plantation is an associate of Ta Ann Holdings Bhd , its largest shareholder with a 29.4% equity interest. Wong, also managing director/CEO of Ta Ann, noted that Sarawak Plantation had successfully normalised almost the entire 6,000ha of oil palm areas identified in 2018 for improvement and enhancement, including 400ha rehabilitated last year. The remaining 20ha are expected to be normalised this year. On areas of the group's plantations which were encumbered by local villagers, Wong said via engagements with them, the group successfully resolved 100ha last year, bringing the total recovered area to some 4,300ha since 2018. Around 2,100ha of matured areas remain encumbered. Despite the challenges in recovering these areas, the group remains dedicated in rehabilitating all, or at least the majority, of these areas. In 2024, Sarawak Plantation declared 1,500ha of oil palms as matured, with young mature palms (four to six years) accounting for 9% and prime mature palms (seven to 20 years) comprising 59%. Immature and old mature palms (over 21 years) made up 25% and 7%, respectively. Sarawak Plantation also launched its own-designed and developed oil palm harvesting machines called 'Lipan' last year, as it shifts towards field mechanisation from the traditional labour-intensive harvesting method. These machines are equipped with wireless control, enabling operators to manage the harvesting process easily and efficiently. Another research initiative currently in trial is a six-wheeler, adopted from logging operations and modified to navigate rugged and hilly terrains for fresh fruit bunch (FFB) evacuation. Once further design iterations are completed, these machines are expected to serve the group's new planting areas, which are being designed for mechanisation in the future. Wong said the group is expanding the use of 'Lipan' in suitable harvesting areas and will continue to monitor and enhance their performance. Currently, 10 harvesting machines are operational across the group's plantations. 'Embracing mechanisation for harvesting and other field operations is a sustainable approach to reducing labour dependency. The group also believes that mechanisation offers many benefits, including increased efficiency and enhanced sustainable practices.' He said Sarawak Plantation's action plans for 2025 include executing effective replanting strategies to optimise planting density and expand harvesting path for future mechanised opportunities, while maintaining the yield potential of the oil palms. The group is also accelerating replanting efforts in low-yielding areas, regions severely affected by Ganorderma infestation, and areas with low palm stands, alongside recovering more encumbered areas and old mature fields. It plans to expand the facilities and production capacity of its three oil palm nurseries, which currently have the capacity to grow up to 1.2 million seedlings a year. The high-yielding and genetically superior seeds, branded 'Surea DxP', have shown to produce high FFB and oil yields. These seeds have been tested and confirmed to exhibit a moderately slow height increment, Wong added, ensuring stable yields over time while minimising the risk of disease outbreaks in the estates. — By JACK WONG
