Boustead allocates RM1.3bil capex

KUALA LUMPUR: Boustead Holdings Bhd (BHB) has allocated about RM1.3bil as capital expenditure (capex) for this year, with most to be used for land bank expansion.

Deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin said RM675mil would be used for the proposed acquisition of plantation land and RM430mil to expand its land bank for property development activities.

“The balance will be utilised to reinforce our presence in the hospitality sector, particularly for Royale Chulan Cherating. It will also go towards shoring up our position in the plantation sector by upgrading estates and mills,” he said in the 2017 BHB Annual Report.

Lodin said in 2017, BHB had embarked on the proposed acquisition of 11,600 ha of plantation land, which was expected to be completed by the second quarter of 2018, and would boost the company’s land bank to 93,400 ha.

For the financial year ended Dec 31, 2017, BHB’s net profit increased to RM923.3mil compared with RM589.1mil posted in 2016, while revenue was up 20% to RM10bil from RM8.37bil previously.

On outlook, Lodin said the year ahead would certainly bring a fair share of setbacks and challenges to BHB, particularly with the heightened competition in many of the sectors that the group thrives in, but was confident of its track record and fundamentals. — Bernama