PETALING JAYA: SD Guthrie Bhd’s net profit for the second quarter ended June 30, 2026 almost doubled to RM987 million from RM505 million a year earlier, driven by stronger contributions from its industrial development and downstream segments.
Revenue, however, fell 4% year-on-year to RM4.94 billion from RM5.17 billion, according to a filing with Bursa Malaysia.
The plantation group’s profit before interest and tax (PBIT) rose 63% to RM1.31 billion from RM804 million, while net profit increased 95% to RM987 million.
The standout performer was its industrial development segment, which recorded PBIT of RM529 million, mainly from the group’s share of the gain from the disposal of 935 acres of land at its Kulai estate in Johor to Eco Business Park 8 Sdn Bhd (EBP 8).
EBP 8 is a 45%-owned joint venture between SD Guthrie, EcoWorld and Permodalan Darul Ta’zim, established to develop an integrated industrial park on the land.
The downstream segment also performed better, with PBIT rising 8% to RM136 million from RM126 million, supported by a recovery in Asia Pacific bulk operations on improved margins. This offset weaker performance in differentiated refinery operations in Asia Pacific and Europe amid softer demand and lower margins.
Meanwhile, the upstream segment’s recurring PBIT declined 5% to RM627 million, mainly due to higher costs and a marginal decline in the oil extraction rate to 21.18% from 21.19%.
The impact was partly cushioned by higher realised CPO and palm kernel prices, which rose 3% and 6% respectively, while fresh fruit bunch production was marginally higher.
For the six months ended June 30, SD Guthrie’s net profit rose 44% to RM1.55 billion from RM1.07 billion, despite a 4% decline in revenue to RM9.63 billion from RM9.99 billion.
PBIT increased 31% to RM2.12 billion from RM1.62 billion.
The upstream segment remained a drag on the first-half performance, with recurring PBIT falling 18% to RM1.16 billion from RM1.41 billion, mainly due to a 2% decline in FFB production to 4.20 million tonnes.
This was partly mitigated by an improvement in the oil extraction rate to 21.27% from 21.18%.
In contrast, downstream PBIT rose 21% to RM245 million, while industrial development delivered PBIT of RM689 million for the first half, largely due to the RM529 million gain from the Kulai land sale.
On a quarter-on-quarter basis, net profit jumped 76% from RM560 million, with higher profits across all major segments except upstream operations in Papua New Guinea and Solomon Islands.
SD Guthrie said its finance costs increased 65% year-on-year following loan drawdowns to redeem its RM2.2 billion perpetual sukuk in March. However, on a comparable basis, total funding costs including sukuk distributions were RM14 million lower than a year earlier, helped by lower financing balances and average funding rates.
Looking ahead, the group expects tightening global supply and resilient demand to support CPO prices, with potential supply-side pressures from an anticipated El Niño towards year-end.
It also expects demand to be supported by Indonesia’s B50 biodiesel mandate and firm crude oil prices amid renewed geopolitical tensions.
SD Guthrie said its industrial development segment is expected to further strengthen its contribution to earnings, while the renewable energy business will continue laying the foundation for longer-term growth.
President and group CEO Mohd Haris Mohd Arshad said the first-half performance underscored the group’s transformation into a more diversified business beyond its traditional plantation base, with industrial development and renewable energy being expanded through strategic partnerships.
