Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said the improved results is testament that the company
KUALA LUMPUR: Boustead Plantations Bhd
’s net profit jumped 58% to RM37.36mil in the third quarter ended Sept 30, compared with RM23.63mil posted in the same quarter last year.
The plantation company attributed its positive results to better palm product prices and lower operating expenditure for shortfalls in fresh fruit bunch production.
Its revenue in the third quarter rose to RM199.32mil against RM166.55mil in the previous corresponding quarter. Its earnings per share for the period rose to 2.34 sen compared with 1.48 sen achieved previously.
Boustead Plantations has declared a dividend of 5 sen per share in respect of the year ending Dec 31, 2016. The dividend will be paid on Dec 14.
In the first nine months, Boustead Plantations posted a net profit of RM177.49mil, or 11.09 sen earnings per share on revenue of RM511.22mil.
The group said its net profit was supported by gain on disposal of plantation land of RM117.8mil, better palm product prices and lower operating expenditure.
Boustead Plantations said for the nine-month period, crude palm oil (CPO) achieved an average selling price of RM2,475 per tonne. This was an increase of RM315 per tonne, or 15% from RM2,160 per tonne from the corresponding period last year.
Commenting on its prospects, Boustead Plantations said it would be much driven by CPO prices and crop production. CPO and palm kernel prices are expected to remain favourable while the blockades in the Sarawak estates and the lingering moisture stress effects of El-Nino will affect crop production.
“CPO price reached a new high in September 2016 on the back of higher than expected surge in market demand coupled with the continuing dampened crop production after El Nino.
“The prevailing weak global economy and adverse effects of El Nino on prodiction is expected to remain while demand could be affected by further release of rapeseed oil reserves in China and weaker Renminbi currency against the greenback,” Boustead Plantations said.
Nonetheless, it said CPO prices were expected to remain encouraging thus allaying concerns and contributing towards a positive outlook.
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