Boustead Plantations Records Six-fold Jump in PAT for 1H2014

KUALA LUMPUR, August 20, 2014 – Boustead Plantations Berhad (BPB) recorded a profit after tax (PAT) of RM40.5 million for the half year ended 30 June 2014, signifying a strong six-fold increase compared with RM5.8 million registered in the previous year’s corresponding period. This was achieved on the back of a 13% improvement in revenue to RM387.3 million for the half year period compared with 2013. PAT for the quarter recorded a marked improvement of RM9.9 million compared with the loss of RM15.5 million in the second quarter of 2013. .

Profit before tax (PBT) for the Group was RM61.5 million, signifying a 379% increase compared with the first half of the previous year while PBT for the quarter stood at RM20.9 million compared with the RM16.6 million loss recorded in the previous corresponding quarter.

For the six-month period under review, earnings per share was 3.8 sen while net assets per share as at 30 June 2014 stood at RM1.46.

Average price realised for crude palm oil (CPO) for the first half of the year was RM2,605 per metric tonne (MT), a 12% increment on a year-on-year basis. Correspondingly, the average palm kernel (PK) price was RM1,958 per MT. Fresh fruit bunches (FFB) production for the six-month period was 498,929 MT, a 5% year-on-year improvement.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, Boustead Plantations Berhad, said, “We are pleased to announce that we will be paying out a 2 sen interim dividend per share for the financial year ending 31 December 2014. We will be paying out a total of RM32 million on 24 September 2014 to our shareholders on the register as at 8 September 2014. This will be our first post-IPO dividend for Boustead Plantations, as we continue in our journey to enhance our yields and strengthen our long-term profitability for the benefit of our shareholders.”

The Sabah region was the biggest contributor to the Group, delivering an operating profit of RM43.9 million for the half-year period, demonstrating a 428% increase compared with the previous corresponding period’s RM8.3 million. The region’s improved results were attributed to improved average CPO and PK prices as well as improved crops from existing estates in addition to output from the newly acquired G&G Estate. Production of FFB for the first six months of 2014 came in at 212,927 MT, an 18% improvement compared with the previous corresponding period.

The second highest contributor to the Group was the Peninsular region which reported an operating profit of RM40.2 million for the first half of 2014, 89% higher than last year. Improved CPO and PK prices in addition to consistent production of FFB were the main contributing factors for the region’s results. Crop harvest for the six month period came in at 202,115 MT which was influenced by continuous dry weather since the beginning of the year as well as labour shortage at several estates.

The Sarawak region recorded an improved operating profit of RM6.1 million compared with a loss of RM9.7 million registered in the first half of 2013. Profit for the region was supported by better selling prices. FFB production for the half year period was 83,887 MT.

“The Group is employing a cautious outlook for the second half of the year as we prepare for the potential impact of El Nino on CPO prices. Meanwhile, the rising biodiesel mandates in several countries including Malaysia is expected to support the market for palm oil. With our long-term growth strategy in place for the Group, we are confident of our ability to weather the conditions ahead,” concluded YBhg Tan Sri Dato’ Seri Lodin.

Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Plantations Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

-ends-