Boustead Plantations returns to the black with RM43m net profit

KUALA LUMPUR: Boustead Plantations Bhd marked a successful turnaround with a net profit of RM42.95 million for the year ended Dec 31, 2020 versus a net loss of RM144 million in 2019.

Its revenue increased 32.2 per cent to RM763.05 million from RM577.2 million previously.

Boustead Plantations said in a statement yesterday this was achieved on the back of better palm product selling prices, with profit from operations increasing to RM63 million.

Average crude palm oil (CPO) selling price increased to RM3,324 per tonne in the fourth quarter of last year from RM2,446 per tonne in the previous year.

The average palm kernel price was also 42 per cent higher at RM2,003 per tonne.

Fresh fruit bunches (FFB) production for the quarter came in at 247,693 tonnes.

The company said as a result of operational efficiencies, FFB yield had improved from 3.5 tonnes per hectare to 3.7 tonnes per hectare.

Average oil extraction and kernel extraction rates stood at 21.1 per cent and 4.2 per cent, respectively.

For the fourth quarter, Boustead Plantations registered a net profit of RM27.46 million versus a net loss of RM172.73 million in 2019. Revenue increased 27.1 per cent to RM227.62 million from RM179.1 million.

Boustead Plantations has declared a second interim singletier dividend of 0.5 sen per share for financial year 2020.

The dividend will be paid on April 28 to shareholders on the register as at April 8.

Boustead Plantations chief executive officer Ibrahim Abdul Majid said crop production and CPO prices will continue to underpin its performance.

“While production is set to see a recovery this year, the current tight palm oil inventories are expected to shore up CPO prices for the first quarter of the year.

“The tight supply could potentially ease in the second half of the year, with production expected to increase above the previous year's level as inventories recover.”

He said this is dependent on several factors, including weather conditions, the extent of crop losses and whether the shortage of workers would worsen if new restrictions are implemented.

“CPO prices will also continue to be influenced by changes in the import and export tax structures of consuming and producing countries, as well as global supply-demand dynamics of competing edible oils,” he said.