BOUSTEAD H1 PROFIT EASES TO RM 37m
Performance affected by lower contributions from plantation, heavy industries and property divisions
BOUSTEAD Holdings Bhd’s net profit eased to RM37 million in the first six months ended June 30 on the back of RM4.6 billion revenue. The group said the performance had been affected by weaker contributions from three divisions.
“The group was impacted by challenging market conditions, which resulted in weaker contributions from the plantation, heavy industries and property divisions.
“Other divisions were able to achieve solid performances. The group will continue to leverage the strength of diversified core businesses to deliver sustained results,” said a company spokesperson in a statement yesterday.
“As part of our commitment to delivering shareholder value, we have declared a second interim dividend of one sen per share for the financial year ending December 31. This will be paid on October 5 to shareholders on the register as at September 21,” said the spokesperson.
Boustead said the trading and industrial division was the key contributor for the six months, recording an increased profit of RM74 million.
This was primarily attributable to stockholding gains, better operating margins and sales volumes recorded by Boustead Petroleum Marketing Sdn Bhd.
The finance and investment division posted a higher profit of RM51 million.
A lower contribution from Affin Bank Group was mitigated by better contributions from the division’s portfolio of investments.
Its pharmaceutical division registered an improved profit of RM32 million for the half-year period, mainly due to stronger contributions from the concession business, which compensated for higher operating expenses.
The plantation division recorded a deficit of RM18 million, 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 per cent drop from the previous year’s corresponding period, while fresh fruit bunch production declined two per cent to 431,349 tonnes.
Meanwhile, Boustead’s property division posted a loss of RM19 million.
The group said while there was a reduced share of loss from a joint venture, Boustead Ikano, which was dampened by weaker results from the property development and hotel segments, as well as unrealised exchange loss from the property investment segment.
The heavy industries division registered a deficit of RM30 million on the back of weaker performances from all its operating units.
Boustead Heavy Industries Corp posted a lower contribution as the bottom line for last year’s corresponding period was bolstered by conditional variation order claims for Belum topside project.
Boustead Naval Shipyard incurred a deficit due to weaker performance from both shipbuilding and ship repair activities. MHS Aviation also registered a deficit as its current operation was being scaled down, said the group.