Boustead Plantations Delivers Improved PAT For First Nine Months

KUALA LUMPUR, November 19, 2014 ­– Boustead Plantations Berhad (BPB) delivered a strong performance for the first nine months ended 30 September 2014 with a profit after tax (PAT) of RM57.6 million, a significant increase compared with RM31 million in the previous financial year’s corresponding period. This was achieved on the back of an improved turnover of RM550.2 million. Profit before tax (PBT) grew to RM82.2 million, a 97% jump from RM41.7 million in the same period last year.

For the third quarter, the Group recorded a PAT of RM17 million and a PBT of RM20.7 million. Revenue for the quarter under review was RM162.9 million.

Earnings per share was 4.74 sen for the nine month period, while net assets per share as at 30 September 2014 stood at RM1.45.

Average selling price for crude palm oil (CPO) for the first nine months was RM2,477 per metric tonne (MT), compared with RM2,333 per MT in the previous year’s corresponding period. Average palm kernel (PK) price was RM1,802 per MT. Fresh fruit bunches (FFB) production for the period increased by 4% to 773,937 MT. CPO production rose by 8% to 183,930 MT, supported by an oil extraction rate (OER) of 21.7%, a 4% improvement compared with 20.9% in the same period last year.

As a result of this satisfactory performance and in line with the Group’s commitment to enhancing shareholder value, the Board of Directors declared a second interim dividend of 2 sen per share. This brings total dividends to date to 4 sen per share for the financial year ending 31 December 2014.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, Boustead Plantations Berhad, said, “We are pleased to deliver improved results for the first nine months of the year, despite tough external pressures and volatile CPO prices. Our strong growth for the period was driven by higher production as well as increased selling prices of CPO and PK. “

The Peninsular region was the strongest contributor to the Group with an operating profit of RM61.7 million for the nine-month period, a 47% increase from the same period last year. This was primarily due to higher CPO and PK prices as well as an improved OER rate of 21.9%. FFB production saw a marginal decline due to extremely dry weather conditions during the first half of the year as well as labour shortages, coming in at 324,954 MT.

The Sabah region delivered an operating profit of RM48.4 million, a four-fold increase from the previous year’s corresponding period. This was attributable to better palm product prices, improved crops from existing estates and contributions from the recently acquired G&G Estate, as well as an improved OER of 22.1%. FFB production grew by 19% to 319,731 MT for the first nine months.

Meanwhile, the Sarawak region recorded an operating profit of RM6.2 million, compared with the loss of RM2.1 million in the corresponding period last year. This was largely due to higher selling prices and lower maintenance for areas under blockade. FFB crop for the nine month period stood at 129,253 MT.

“It is hoped that CPO prices will strengthen for the remainder of the year. This will be further supported by zero export tax on CPO which the Government has extended to December 2014. At the same time, as we move forward we remain cognisant that the market’s recovery will continue to be impacted by challenging external factors, such as competition from Indonesian palm oil and other edible oils.”

“We will continue to ensure we are able to deliver shareholder value by leveraging on our strong track record and pursuing viable prospects, in order to realise our long-term growth plans,” 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.

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