Boustead Plantations Delivers Q2 PAT of RM47 million

Declares Second Interim Dividend of 5 sen per share

KUALA LUMPUR, August 20, 2015 – Boustead Plantations Berhad (BPB) recorded a stronger performance for its second quarter ended 30 June 2015, with a profit after tax of RM47 million, a significant increase from RM6 million in the preceding quarter. Profit before tax for the quarter rose to RM53 million on the back of a revenue of RM153 million. Earnings per share for the period was 3.04 sen, while net assets per share stood at RM1.43 as at 30 June 2015.

These improved results were mainly due to gains realised on disposal of lands amounting to RM39.1 million. Revenue was also boosted by higher crude palm oil (CPO) sales volume of 56,826 metric tonnes (MT) for the quarter under review, up from 48,171 MT in the preceding quarter.

Meanwhile, the average CPO selling price for the second quarter was RM2,181 per MT. Average palm kernel (PK) price was RM1,535 per MT. Fresh fruit bunches (FFB) production increased by 27% to 269,179 MT, primarily attributable to recovery from dry weather conditions and last December’s floods in the Peninsular region, coupled with an improvement in labour shortage for harvesting tall palms in Sabah. Oil extraction rate and kernel extraction rate came in at 21.7% and 4.6% respectively.

In line with the Group’s commitment to delivering shareholder value, the Board of Directors declared a second interim dividend of 5 sen per share for the financial year ending 31 December 2015. The dividend will be paid on 29 September 2015 to shareholders on the register as at 8 September 2015. This will bring cumulative dividends to 7 sen.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, BPB, said, “For the first half of the year, the Group continued to be impacted by tough market conditions, including bearish palm product prices and the ongoing blockade in certain estates. Despite this, we are pleased to have recorded stronger results for the second quarter.”

“Moving forward, external factors such as price recovery for palm oil coupled with crop production will have a bearing on the Group’s prospects. The strengthening of soyoil prices and the weakening of the Ringgit has also resulted in a wider CPO discount to soyoil. This could help to boost demand for palm oil which would certainly bode well for the Group.”

In the second quarter, the Peninsular region posted a stronger operating profit of RM13 million compared with RM9 million in the preceding quarter, as a result of higher CPO and PK production. FFB production increased by 37% to 125,540 MT due to recovery of seasonal yields from March 2015 onwards, mitigating the setbacks caused by extremely dry weather conditions during the first quarter this year.

The Sabah region registered an operating profit of RM7 million for the quarter under review compared with RM6 million in the preceding quarter. This was mainly attributable to the improving yield trend, as well as actions taken to address labour shortages for harvesting tall palms.

Meanwhile, the Sarawak region recorded an operating loss of RM1 million. FFB crop for the period was 40,814 MT, an improvement of 18% from the immediate preceding quarter.

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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