Boustead posts loss, dragged down by plan­ta­tion and prop­erty

The Star Malaysia - StarBiz - - News - By INTAN FARHANA ZAINUL in­tan­zainul@thes­tar.com.my

PETALING JAYA: Boustead Hold­ings Bhd slipped into the red in the sec­ond quar­ter, dragged down by its plan­ta­tion, heavy in­dus­try and prop­erty di­vi­sions.

The group posted a loss of RM27.6mil in the sec­ond quar­ter ended June 30, from a net profit of RM52.5mil a year ear­lier.

Its rev­enue dur­ing the quar­ter fell marginally to RM2.37bil from RM2.39bil pre­vi­ously.

“The group was im­pacted by chal­leng­ing mar­ket con­di­tions, which re­sulted in weaker con­tri­bu­tions from the plan­ta­tion, heavy industries and prop­erty di­vi­sions.

“De­spite this, our other di­vi­sions able to achieve solid per­for­mances.

“Mov­ing for­ward, the group will con­tinue to lever­age on the strength of our di­ver­si­fied core busi­nesses to de­liver sus­tained re­sults,” it said in a state­ment yes­ter­day.

In a fil­ing with Bursa Malaysia, Boustead de­clared a sec­ond in­terim div­i­dend of 1.0 sen per share, which will be paid on Oc­to­ber 5 to share­hold­ers.

Shares of Boustead closed two sen lower at RM2 yes­ter­day.

Cu­mu­la­tively, for the first half of fi­nan­cial year end­ing Dec 31, 2018, Boustead posted losses of RM21.5mil from RM48.5mil net profit last year. were

Its rev­enue for the pe­riod fell 3% to RM4.62bil com­pared to RM4.76bil a year ago.

The group said that its trad­ing and in­dus­trial divi­sion was the key con­trib­u­tor for the six-month pe­riod, record­ing an in­creased profit of RM74mil.

“This was pri­mar­ily at­trib­ut­able to stock­hold­ing gains as well as bet­ter op­er­at­ing mar­gins and sales vol­umes recorded by Boustead Pe­tro­leum Mar­ket­ing Sdn Bhd,” it said. Its fi­nance and in­vest­ment divi­sion posted a higher profit of RM51mil dur­ing the pe­riod, de­spite a lower con­tri­bu­tion from the Af­fin Group.

Boustead said that its plan­ta­tion divi­sion recorded a deficit of RM18mil for the first six months of 2018, im­pacted by a sharp fall in palm prod­uct prices and in­creased op­er­at­ing costs.

Av­er­age crude palm oil sell­ing price for the first half of the year was RM2,457 per tonne, a 17% drop from the pre­vi­ous year’s cor­re­spond­ing pe­riod, while FFB pro­duc­tion de­clined by 2% to 431,349 tonnes.

Mean­while, its prop­erty busi­ness posted losses of RM19mil due to weaker re­sults from the prop­erty de­vel­op­ment and ho­tel seg­ments, and un­re­alised ex­change loss.

Its heavy industries seg­ment reg­is­tered a loss of RM30mil due to weaker per­for­mances from all its op­er­at­ing units.

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