BOUSTEAD PLANTATIONS BACK IN THE BLACK

Company posts RM79.23m net profit from RM22.24m net loss in same period last year

BOUSTEAD Plantations Bhd has returned to black with a net profit of RM79.23 million for its second quarter ended June 30 this year, from a RM22.24 million net loss in the same period a year ago.

In a filing with Bursa Malaysia yesterday, the company said the higher earnings were due to the disposal of Seberang Prai Utara property worth RM119.5 million.

Revenue, however, fell to RM123.95 million from RM141.75 million previously on lower prices of palm products.

For the first half of this year, it posted a net profit of RM63.03 million compared with a net loss of RM16.98 million a year ago.

Boustead Plantations said the average crude palm oil (CPO) selling price for the six-month period decreased 18 per cent to RM2,003 a tonne, while the average palm kernel price declined by 40 per cent to RM1,202 a tonne.

Fresh fruit bunches production for the period grew 13 per cent to 488,198 tonnes, the average oil extraction rate increased 21.4 per cent, while average kernel extraction rate remained stable at 4.4 per cent.

The company said CPO prices were expected to hover in the current range but there could be a recovery towards year-end amid uncertainties arising from the ongoing trade war between the United States and China.

“The group remains focused on enhancing operational efficiencies to ensure our long-term sustainability, in tandem with continuous productivity improvements,” added the plantation company.

Boustead Plantations’ profitability is also expected to be affected by weaker prices of palm oil products as well as challenges in Sarawak operations and newly-acquired estates.