Boustead Records Q3 PAT of RM40 Mil

KUALA LUMPUR, November 30, 2018 – Boustead Holdings Berhad (BHB) recorded a profit after tax of RM40 million for its third quarterended 30 September 2018. Profit before tax (PBT) came in at RM64 million while revenue stood at RM2.5 billion.

For the nine-month period ended 30 September 2018, the Group posted a PAT of RM77 million. PBT stood at RM155 million while revenue came in at RM7.2 billion.

Spokesperson for Boustead Holdings Berhad, said, “Our diversified nature continues to drive the Group forward. Testament to this, several of our core businesses recorded improved results, namely the Finance & Investment, Pharmaceutical and Trading & Industrial Divisions.”

“In line with the Group’s commitment to enhancing value for our shareholders, the Board declared a third interim dividend of 1.5 sen per share for the financial year ending 31 December 2018. The dividend will be paid on 8 January 2019 to shareholders on the register as at 17 December 2018,” concluded the spokesperson.

The Trading & Industrial Division recorded an improved profit of RM117 million for the nine-month period, compared with RM87 million in the previous year’s corresponding period. This was mainly due to stockholding gains as well as better operating margins and sales volumes by Boustead Petroleum Marketing Sdn Bhd.

The Finance & Investment Division turned in a higher profit of RM77 million for the first nine months, compared with RM48 million in the same period last year. This was primarily attributable to a stronger contribution from Affin Bank Berhad and the Division’s other investments.

The Pharmaceutical Division delivered a profit of RM45 million for the nine-month period, up from RM39 million in the previous year’s corresponding period, as a result of higher demand from Government hospitals and lower operating costs.

The Property Division recorded a loss of RM13 million for the nine-month period, compared with the deficit of RM6 million in the same period last year. Despite the progress of the Division’s property development activities and reduced share of loss in Boustead Ikano, a joint venture, this was impacted by weaker contributions from the hotel segment as a result of lower occupancy rates.

The Plantation Division registered a deficit of RM42 million for the first nine months, compared with a profit of RM656 million in the previous year’s corresponding period, which benefitted from a gain of RM555 million on disposal of plantation land. The Division continues to be impacted by declining palm product prices. Average crude palm oil selling price for the nine-month period was RM2,391 per MT, a 17% drop from the corresponding period last year. Fresh fruit bunches production stood at 660,088 MT, down by 5% from the same period last year.

The Heavy Industries Division recorded a deficit of RM30 million for the nine-month period, compared with a profit of RM23 million in last year’s corresponding period. While Boustead Heavy Industries Corporation recorded stronger results due to profits recognised upon finalisation of the submarine’s Second Extended ISS contract with the Royal Malaysian Navy, this was impacted by a deficit incurred by Boustead Naval Shipyard, which saw weaker contributions from both shipbuilding and ship repair activities. A higher deficit was also registered by MHS Aviation as current operations were scaled down.

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 Holdings 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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