Boustead Plantations Q3 profit rises to RM562m

KUALA LUMPUR: Boustead Plantations Bhd’s net profit jumped to RM562 million for the third quarter ended 30 September, from RM37.36 million a year ago, on the back of land sale gains.

The land disposal had realised a gain of RM555 million, said the company in a statement.

Group revenue for the quarter fell eight per cent to RM183.43 million from RM199.32 million previously.

For the nine-month period, Boustead Plantation’s net profit more than doubled to RM628.79 million from RM177.49 million in the previous corresponding period.

“Going into the last quarter of the year, while our peninsula and Sabah regions have seen improved fresh fruit bunches yields, this may be hampered by erratic weather conditions and labour shortages, along with difficult ground conditions in Sarawak,” said Boustead Plantations vice-chairman Tan Sri Lodin Wok Kamaruddin in the statement.

“In addition, Malaysia’s export growth was weaker than expected due to stiff competition from Indonesia which caters to pricesensitive markets such as China and India.”

Despite these challenges, crude palm oil (CPO) prices have outperformed expectations as production recovery was not as strong as expected post-El Nino.

“Robust global demand and comfortable stock levels are also expected to support CPO prices.

“Furthermore, the group’s proposed acquisition of 11,600ha of plantation land in Sabah is on track.

“Once completed, this is expected to unlock substantial value for the group over the long run,” said Lodin.

The company declared a third interim dividend of three sen per share and a special dividend of seven sen per share for the year ending December 31.

The dividends will be paid on December 19.

Boustead Plantations also announced a bonus issue of 640 million new bonus shares on the basis of two bonus shares for every five existing Boustead Plantations shares.

The proposed bonus issue of RM320 million is expected to be completed by the first quarter of next year.