KUALA LUMPUR (Aug 25): Boustead Plantations Bhd posted a net profit of RM48.38 million for the second quarter ended June 30, 2021, a near seven-fold jump from RM7.08 million a year earlier, on the back of higher palm oil product prices.   

Revenue rose 45.33% to RM242.78 million, from RM167.06 million in the same quarter last year, the group said in a bourse filing.

Compared to the immediate preceding quarter, the second quarter net profit was up by almost four folds from RM12.23 million, while revenue improved 41.2% from RM171.94 million.

Boustead Plantations declared a second interim dividend of 2.3 sen per share to be paid on Sept 30. The ex-date is Sept 9.

The group said crude palm oil price (CPO) prices appreciated further in April-June quarter, buoyed by the ongoing production problems in Malaysia and recovery of palm oil purchases largely from India, China and Europe.

The group said the average CPO selling price was RM4,014 per tonne in the quarter, up about 70% from RM2,367 a year earlier, while the average palm kernel price was RM2,647 per tonne, up 96% versus RM1,296 for the April-June period a year ago.

Meanwhile, the second quarter FFB production of 231,702 tonnes was lower than the 270,383 tonnes a year earlier.

For the first half, Boustead Plantations reported a net profit of RM60.6 million, versus a net loss of RM2.47 million in the previous January-June period, while cumulative revenue improved to RM414.72 million from RM329.75 million.

Boustead Plantations CEO Zainal Abidin Shariff said in a statement that the group’s strong performance is a result of the yield improvement programmes carried out as part of the Reinventing Boustead Strategy.

In terms of prospects, Zainal Abidin said it remains uncertain, given the impacted supply affecting the palm oil sector, particularly in Malaysia.

“Weather conditions, particularly in the northern hemisphere, are also expected to affect the production of oilseeds, vegetable oils and oil meals due to soil moisture deficits. 

“There is still a possibility of La Nina returning in the last quarter of 2021, which could lead to heavy rains and flooding in oil palm growing areas in South East Asia,” he added.

Zainal Abidin said in order to further strengthen the group’s performance in line with the Reinventing Boustead Strategy, it will continue to drive productivity improvement initiatives in tandem with ongoing cost optimisation measures, as well as tapping into opportunities for recruitment of local workers.

Boustead Plantations’ share price closed half a sen or 0.84% lower at 59 sen today, valuing the group at RM1.32 billion.

Source: The Edge