Boustead Plantations posts higher net profit of RM44m in Q1
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.