Boustead net profit higher
Third quarter results boosted by one-off gain from plantation land sale
PETALING JAYA: Boustead Holdings Bhd saw its net profit surge to RM312.40mil in the third quarter ended Sept 30 (3Q17), boosted by a one-off gain of RM554.9mil from the sale of plantation land.
Net profit in the same period a year ago stood at RM44mil.
Revenue in the latest quarter increased by 22.2% to RM2.47bil from RM2.02bil previously.
Earnings per share were sen compared with 2.17 sen.
The group, which is controlled by the Armed Forces Fund Board, declared an interim dividend of three sen a share which will be paid on Dec 29.
For the nine months ended Sept 30, 2017, net profit climbed 51.3% to RM375.90mil from RM248.30mil in the previous corresponding period. 15.41 Its revenue increased at a strong pace of 21.6% to RM7.23bil from RM5.95bil.
“The vast improvement was mainly due to the higher gain on disposal of plantation land, better palm product prices and lower finance cost,” the company said.
Meanwhile, Boustead Holdings deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin ( pic) said the group’s stronger performance was driven by gains from the disposal of plantation land.
“Apart from this, most of our other divisions recorded solid results for the period under review.
“The fact that Boustead remains a conglomerate with multiple business streams provides our investors and shareholders with a broader opportunity to leverage on the strengths of our various divisions, even when certain divisions may be impacted by market conditions,” he said in a statement.
In the nine months, the planta- tion division recorded a sharp increase in profit of RM685mil compared with RM201mil in the previous corresponding period.
Driving the stronger performance was mainly due to gains realised on disposal of plantation land amounting to RM555mil.
Earnings were further supported by higher palm product prices and lower finance costs.
Average crude palm oil price for the nine-month period increased by 16% to RM2,871 per tonne.
Fresh fruit bunches crop production grew 5% to 696,668 tonnes, up by 5% from the previous year as a result of improved yields post El-Nino.
As for Boustead’s trading and industrial division, its profit rose to RM87mil from RM81mil mainly due to a higher stockholding gain registered by Boustead Petroleum Marketing Sdn Bhd as a result of increased fuel prices as well as stronger contributions from UAC Bhd.
It said the finance and investment division’s profit edged up to RM48mil from RM46mil due to reduced borrowings and placement of surplus funds as a result of proceeds from the rights issue.
The pharmaceutical division’s profit was lower to RM39mil from RM53mil despite positive contributions from the concession business and the division’s Indonesian operations. On a brighter note, its heavy industries division staged a turnaround with a profit of RM23mil due to better contributions from Boustead Naval Shipyard.