Boustead posts loss, dragged down by plantation and property

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.