Boustead Plantations Q3 PAT Up By 73%

KUALA LUMPUR, November 16, 2016 – Boustead Plantations Berhad (BPB) delivered an improved performance for its third quarter ended 30 September 2016, with a profit after tax (PAT) of RM38 million. This marks a 73% increase compared with RM22 million in the previous year’s corresponding quarter. Profit before tax (PBT) improved to RM50 million while revenue rose to RM199 million.

For the nine months ended 30 September 2016, the Group posted a higher PAT of RM175 million, compared with RM75 million in the same period last year. PBT came in at RM195 million, on the back of RM118 million in gains realised on disposal of land. Turnover for the period increased to RM511 million.

In line with the Group’s solid performance, the Board of Directors declared a third interim dividend of 5 sen per share. The dividend will be paid on 14 December 2016 to shareholders on the register as at 5 December 2016.

The average crude palm oil (CPO) selling price for the nine-month period was RM2,475 per metric tonne (MT), up by 15% from RM2,160 per MT in the same period last year, while average palm kernel (PK) price rose by 52% to RM2,295 per MT. Fresh fruit bunches (FFB) production declined to 660,497 MT, mainly as a result of the adverse effects of the El Nino phenomenon, land disputes in Sarawak and a labour shortage for harvesting tall palms. Average oil extraction rate for the period was 21.5% and kernel extraction rate was 4.4%, slightly lower than the same period last year.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, BPB, said, “Our improved results for the quarter were primarily due to stronger palm product prices and lower operating expenditure, which contributed positively to our earnings. CPO prices were buoyed by lower crop production and a higher than expected surge in market demand, which saw CPO price reaching a new high in September 2016.”

“As the year draws to a close, external factors such as the release of rapeseed oil reserves in China and the volatile global economy continue to be mitigating factors. However, given the impact of the El Nino phenomenon on crop production, CPO and PK prices are expected to remain favourable,” concluded YBhg Tan Sri Dato’ Seri Lodin.

For the nine-month period, the Peninsular region registered a stronger operating profit of RM49 million compared with RM31 million in the same period last year. This was attributable to higher palm product prices and lower operating expenditure. FFB crop declined to 278,491 MT.

The Sabah region recorded a higher operating profit of RM47 million for the nine-month period, compared with RM19 million in the previous year’s corresponding period. This was mainly due to the increase in palm product prices. FFB crop was lower at 281,936 MT.

Meanwhile, the Sarawak region saw a turnaround with a profit of RM1 million compared with a loss of RM4 million in the same period last year, as a result of improved palm product prices. FFB crop came in at 100,070 MT.

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.

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