Boustead Plantations records RM561 million profit after tax for Q3FY17

Boustead Plantations Berhad (BPB) had a strong showing for its third quarter which ended September 30, 2017 with profit after tax (PAT) of RM561 million.

This reflects a sizeable jump from RM38 million in the previous year’s corresponding quarter. Profit before tax (PBT) increased to RM599 million.

These improved results were primarily attributed to gains realised on disposal of land amounting to RM555 million.

Meanwhile, revenue for the quarter under review stood at RM183 million.

For the nine-month period, the group recorded a higher PAT of RM626 million, while PBT rose to RM685 million.

Revenue for the period increased to RM542 million.

In line with the group’s solid performance, the Board of Directors declared a third interim dividend of 3 sen per share and a special dividend of 7 sen per share for the financial year ending December 31, 2017.

The dividend will be paid on December 19, 2017 to shareholders on the register as at December 8, 2017.

In addition to improve liquidity of the stock and further reward shareholders, the group is proposing to undertake a bonus issue of 640 million new bonus shares to be credited as fully paid-up.

This proposed bonus issue is on the basis of two bonus shares for every five existing BPB shares held by shareholders on the register as per an entitlement date that will be determined later.

PLANTATION INDUSTRY SEEING IMPROVED OUTLOOK

The average crude palm oil (CPO) selling price for the nine-month period was RM2,871 per metric tonne (MT), up by 16% from RM2,475 per MT in the same period last year, while average palm kernel price rose by 8% to RM2,478 per MT.

Fresh fruit bunches (FFB) production increased by 5% to 696,668 MT, mainly as a result of improved yields post El-Nino in the first half of the year.

Average oil extraction rate for the period was 20.9 percent and kernel extraction rate was 4.3 percent, slightly lower than the same period last year.

BPB's Vice Chairman Tan Sri Datuk Seri Lodin Wok Kamaruddin said, “We are pleased to deliver a strong performance for the nine-month period. In addition to gains realised from disposal of land, our earnings were supported by better selling prices for palm products.”

For the nine-month period, the Peninsular region recorded a stronger operating profit of RM77 million, up by 63 percent compared with RM47 million in last year’s corresponding period. This was attributable to higher CPO prices.

As a result of improved production from the northern estates and young palms on the east coast, FFB crop rose by 10 percent to 305,713 MT.

The Sabah region posted a higher operating profit of RM59 million, a 24 percent increase from RM47 million in the same period last year. FFB crop grew by 4 percent to 294,243 MT, despite high turnover of workers and erratic weather conditions.

Meanwhile, the Sarawak region registered an operating profit of RM5 million, an improvement from the RM1 million recorded in the previous year’s corresponding period. This was attributable to higher selling prices for palm products. FFB crop for the period saw a slight drop to 96,712 MT.