Boustead Plan­ta­tions posts higher net profit of RM44m in Q1

New Straits Times - - Business -

KUALA LUMPUR: Boustead Plan­ta­tions Bhd de­liv­ered a higher net profit of RM44 mil­lion for its first quar­ter ended March com­pared with RM41 mil­lion in the cor­re­spond­ing quar­ter last year, on the back of a higher turnover of RM189 mil­lion.

Vice-chair­man Tan Sri Lodin Wok Ka­marud­din said the mar­ket was ex­pected to re­main chal­leng­ing in the sec­ond half of the year, with the pos­si­bil­ity of higher crude palm oil (CPO) pro­duc­tion that could re­sult in a buildup of in­ven­to­ries.

The up­trend of palm prod­uct prices was ex­pected to con­tinue as crops re­cov­ered from the ef­fects of the El Nino phe­nom­e­non but would likely be mit­i­gated by a bumper soy­abean crop in the United States and South Amer­ica, cou­pled with grow­ing pres­sures on biodiesel sup­plies to the US and Europe as well as low crude oil prices, he added.

“The group re­mains fo­cused on en­hanc­ing our yields, im­prov­ing ef­fi­cien­cies and strength­en­ing our prof­itabil­ity to de­liver sus­tained earn­ings to our share­hold­ers,” he said in a state­ment.

Boustead Plan­ta­tions said the av­er­age CPO price for the first quar­ter of this year was RM3,166 per tonne, a 40 per cent hike from the same quar­ter last year, while av­er­age palm ker­nel price rose 68 per cent to RM3,204 per tonne.

“Fresh fruit bunches pro­duc­tion in­creased by 13 per cent to 209,526 tonnes, largely due to im­proved yields as crops re­cov­ered from the ef­fects of El Nino.

“Av­er­age oil ex­trac­tion rate was 20.7 per cent, a slight re­duc­tion from last year’s cor­re­spond­ing pe­riod, while ker­nel ex­trac­tion rate was marginally lower at 4.3 per cent.”

Boustead Plan­ta­tions has de­clared a first in­terim div­i­dend of 2.5 sen per share for the fi­nan­cial year end­ing De­cem­ber 2017.

The av­er­age crude palm oil price for the first quar­ter of this year was RM3,166 per tonne, which was a 40 per cent hike from the same quar­ter last year, says Boustead Plan­ta­tions Bhd.

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